VillaTerras | Inland Empire Vacancy Rates Continue to Decline
The Inland Empire maintains its position as the highest-demand logistics market in the western United States.
Current market indicators:
- IE West industrial vacancy: 2.8% (Q3 2025)
- Average asking rent: $1.49/SF triple-net (↑ 7.2% YoY)
- Top absorption markets: Fontana, Rialto, Perris
Prologis, Black Creek, and Duke Realty continue to dominate speculative builds, with absorption driven by e-commerce, EV supply chain logistics, and national 3PLs.
VillaTerras Insight: Expect further pricing compression in entitled land within 5 miles of I-10 and I-15 logistics corridors. Entitled land is currently trading between $1.5M–$1.9M/acre in Perris and Moreno Valley.
Orange & Riverside County Construction Activity
Construction activity remains active despite financing headwinds and rising entitlement delays.
Orange County
- Industrial teardown and conversion continues in Anaheim and Garden Grove.
- Mid-sized logistics developers are targeting former R&D/flex sites for conversion to Class A warehouse.
Riverside County
- Notable entitlements underway:
- Perris Gateway Logistics Park (750,000 SF approved)
- Woodcrest Industrial District (Phase 1 pre-leased)
- Infrastructure upgrades tied to Measure A and SCAG coordination continue across March Air Reserve Base and Highway 74 corridor.
Port Volumes Up, Driving Inland Shift
Port of Los Angeles and Port of Long Beach released July metrics:
- YoY container volume increase: 10.1%
- Intermodal rail traffic: +12.8%
- Dwell times: down to 3.5 days average per container
Logistics firms are securing land and facilities further inland to offset warehouse shortages in LA County.
Key lease signings this week include:
- Amazon → 680,000 SF in La Mirada
- Wayfair → 312,000 SF in Rancho Cucamonga
- Chewy → 425,000 SF in Eastvale (Rexford development)
ESG Pressures Driving Facility Design Changes
California’s regulatory landscape continues to shape design standards in the industrial sector.
- CARB’s Warehouse Indirect Source Rule compliance deadline approaching for 100,000+ SF facilities.
- Developers are integrating:
- Solar-ready roofing
- On-site EV-charging (min 10% of stalls)
- Water-wise native landscaping
- ESG disclosure integration for investor partners
VillaTerras Note: Projects failing to address Scope 1 and Scope 2 emissions in building design are seeing up to 6-month entitlement delays in LA and Riverside counties.
Land Valuation Trends
| Region | Entitled Land (Per Acre) | Raw Land (Per Acre) | Remarks |
| Inland Empire West | $1.6M – $1.9M | $900K – $1.2M | Scarce inventory |
| Riverside (South) | $1.1M – $1.3M | $650K – $850K | High absorption |
| North LA / Vernon | $2.2M – $2.5M | N/A | Extremely limited |
| Woodcrest Corridor | $1.3M – $1.6M | $800K – $1.0M | Target for redevelopment |
Key Takeaways for Investors and Developers
- Demand remains stable in logistics-driven inland hubs.
- CEQA review times are extending for non-ESG-compliant submissions.
- Entitled industrial land continues to appreciate and is the most competitive asset class in the SoCal land market.
VillaTerras Opportunity: We are actively sourcing off-market entitled land, particularly in:
- Eastvale
- Perris
- Jurupa Valley
- Colton
For land valuation, development feasibility, or strategic positioning, contact VillaTerras.com.
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At VillaTerras, we specialize in unlocking the full value of land and industrial property across Southern California and beyond. Whether you’re evaluating a development opportunity, navigating entitlements, or seeking off-market assets, our data-driven approach, valuation expertise, and strategic insights position you for success in today’s evolving market.
Contact us to begin a confidential discussion and discover how your land could be working harder for you.
Call Today 949.423.3778 VillaTerras Team