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Research - AUGUST 5, 2026

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Beyond vacancy: What is really driving Southern California’s Inland Empire industrial market at mid-year

by Noah Samarin

During the past couple of years, the industrial real estate market, even in key hubs such as Southern California, has faced no shortage of uncertainty. Yet, throughout that volatility, the Inland Empire has remained remarkably resilient.

Sales activity across the region has accelerated at midyear, while select submarkets continue to exhibit exceptional fundamentals. Chino, Calif., is a prime example: direct vacancy held at only 3.24 percent through second quarter 2026, according to DAUM’s latest Inland Empire Industrial Market Report, essentially unchanged from the first quarter even as vacancy increased across the broader market. Persistent tightness in the region’s strongest

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