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Market Report

Riverside-San Bernardino Retail Market Report

3Q 2022

Strong Growth Projections Convince Brand-Name
Retailers to Prioritize Inland Expansion

Metro well-positioned for further vacancy compression. Availability in Riverside-San Bernardino fell 130 basis points during the 12-month interval ended in June, the largest drop recorded across major California markets. This performance was capped off by retailers absorbing 1.3 million square feet of space in the first half of 2022, a total more than four times the volume of space added to inventory. Such a disparity indicates vendors are expanding by backfilling existing properties. This trend is likely to continue based on population and economic growth expectations, and the metro's active construction pipeline. As of August, the Inland Empire's job count exceeded its pre-pandemic mark by 80,900 roles, with historically strong rates of in-migration and household formation expected for at least the next two years. Meanwhile, retail inventory is slated to expand by less than 1.0 percent for an eighth consecutive year.
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