Riverside-San Bernardino Retail Market Report
Region Leans on Its Largest Employment Sectors, Housing Market Strength to Support Recovery
Vacant stock expected to rise for a second straight year. After recording negative absorption for the first time since 2011, the Inland Empire entered this year with the highest retail vacancy among major U.S. markets. Big-box space has been hit hard, with a collection of national chains recently shutting down multiple stores and additional closures planned. Recent leasing activity indicates these larger dark properties will struggle to secure tenants in the near term, preventing positive absorption this year. The market’s sizable logistics and healthcare sectors could represent a potential boon for retail as vacancy rises. If organizations within these industries utilize available big-box space the impact of closures could be somewhat mitigated. Recently, Amazon leased a former Walmart in Victorville for a last-mile facility and Inland Empire Health Plan occupied a former Michaels.