The Inland Empire industrial market of the past few years has officially pulled back from its rapid post-pandemic growth. As we close out 2025, the market is navigating a period of longer lease-up timeframes, increased concessions, and a significant shift in tenant leverage. In this episode, we break down the Q4 2025 data to help owners, tenants, and investors understand the "New Normal" for Southern California logistics. We analyze the sharp contrast between the IE East and West, the surprising absorption figures in the 100k–250k SF segment, and why the construction pipeline has hit a decade-plus low.
[00:00] - Introduction to Adding Value An overview of the show’s mission to explore stories and strategies in the industrial and logistics real estate world.
[01:03] - Market Highlights: The Great Recalibration Shy introduces the Q4 2025 market data, highlighting negative absorption in the West and high vacancy in the East.
[02:12] - Case Study: The 1.1 Million Sq Ft Fontana Sale A deep dive into the $174 million sale of a distribution facility on Production Avenue and what it signals to "smart money" investors.
[04:47] - Why Large Assets (800k+ Sq Ft) Remain Competitive Analysis of supply-demand ratios for massive warehouses and why they are considered "irreplaceable" real estate [05:42].
[10:59] - Small Building Segment (0-100,000 Sq Ft) Performance Why smaller buildings have weathered the market storm better than any other segment due to stagnant inventory [12:42].
[14:17] - Tenant Case Study: NeilMed Renewal in Ontario A look at a 90,000 sq ft class A renewal, discussing rent rates and tenant concessions in the current environment.
[16:22] - User Case Study: 62,000 Sq Ft Purchase in Jurupa Valley The process of representing a user in a year-long acquisition and the "educational process" for buyers [17:21].
[19:42] - The Buy vs. Build Dilemma Why buying existing product currently makes more sense for users than purchasing land and building from scratch [21:56].
[22:11] - West Segment Analysis: 100,000–250,000 Sq Ft A discussion on Rialto's unique position between the West and East markets and the "glut of inventory" in this size range [24:43].
[24:54] - Impact of Tariffs and Post-COVID Lease Expirations How shifting trade policies and excess pandemic-era real estate are driving vacancy rates.
[27:01] - West Segment Analysis: 250,000–500,000 Sq Ft The role of Chinese 3PLs and e-commerce companies in recent leasing activity.
[28:55] - West Segment Analysis: 500,000+ Sq Ft Explaining the dichotomy of high lease rates despite rising vacancy in the rest of the market.
[31:45] - East Segment Analysis: 100,000–250,000 Sq Ft Insights into leasing velocity in the East, specifically regarding class A buildings in Corona and Perris [33:27].
[35:09] - The "Most Beat Up" Segment: 250,000–500,000 Sq Ft (East) Why one out of five buildings in this segment are sitting vacant and the "hangover effect" of overdevelopment [37:16].
[38:23] - Future Outlook: Construction Trends and Land Values A look at the drastic drop in square footage under construction and predictions for land values in 2026.
[41:59] - Conclusion and Final Thoughts Closing remarks and how to contact the team for Inland Empire real estate opportunities.
Connect with me: 📍 Industrial Real Estate Broker | Inland Empire 📧 Sassar@voitco.com 📸 Instagram: @addingvalueshyassar 🌐 Website: https://iebigboxadvisors.com/
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