The Inland Empire industrial market showed signs of stabilization in Q1 2025, with a rebound in leasing activity and vacancy trending downward to 7.14%. Although asking lease rates dropped 25% year-over-year to $1.03/SF, landlords are relying more on concessions to stay competitive amid a flood of new deliveries and high sublease availability. Sales activity remains sluggish due to high interest rates and macro uncertainty—especially around newly imposed tariffs impacting trade. Net absorption stayed positive, but growth is uneven between the West (stronger) and East (weaker) submarkets. As construction slows, the market may finally be rebalancing.