Inland Empire retail rents stagnate amid rising availability

Retail commercial real estate investors in the Inland Empire are easing rent increases in response to weaker tenant demand. As space availability has risen to a four-year high, rent growth has dissolved. The market average asking rents for available space across retail building subtypes, from strip centers to malls, is flat year over year and heading into negative territory. Annual rent growth peaked at over 5% in 2022 and has dissipated since then.