Riverside-San Bernardino Retail Market Report

Demographic trends cultivate optimism despite increase in availability. Vacancy in the Inland Empire this year will rise for just the third time since 2011. Development is picking up, particularly in Coachella Valley and along Interstate 215 from Riverside to Murrieta; yet leasing for both upcoming deliveries and existing properties is improving. After several years of decline, leasing velocity improved last year, with the number of executions slightly exceeding the tally from 2023. Move-ins slated for this year will be led by grocers and discount retailers, including Sprouts Farmers Market, Dollar Tree and Daiso, with the latter opening four new locations. PetSmart, Inc. is also expanding its presence in the region. These move-ins are supported by the market’s strong demographic trends. Net in-migration over the past five years surpassed the combined total from the prior 14 years, contributing to the metro’s highest population growth since 2006 last year, as well as record-setting net absorption of apartments. Bolstered by household income above the national average, this momentum should keep cultivating retailer demand for available spaces.