Riverside-San Bernardino Retail Market Report

Multi-tenant properties continue to outperform. The Inland Empire’s retail market faces a challenging near-term environment marked by a disconnect between tenancy-type demand. Steadier leasing held multi-tenant vacancy in the mid-6 percent range in 2025, more than 100 basis points below its long-term average. Single-tenant vacancy, however, has risen rapidly over the past two years, pushing the rate to 7.4 percent, the highest level among major U.S. markets heading into 2026. Softness has been most pronounced across properties ranging from 10,000 to 30,000 square feet, driven in part by store closures stemming from national retailer downsizing and bankruptcies. These pressures are likely to persist in the coming year. Macy’s and Walgreens have announced multiyear store-closure programs through 2026, which could result in additional move-outs locally. Among submarkets, Rancho Cucamonga-Ontario and San Bernardino proper are best positioned, while Moreno Valley and the Coachella Valley each entered this year with some of the metro’s highest vacancy rates.