Riverside-San Bernardino Retail Market Report

Net in-migration continues to fuel metro’s retail sector. More than 35,000 new residents are expected across the Inland Empire by year-end, surpassing the combined total for the three other major Southern California markets. The metro’s relative housing affordability and proximity to job centers should continue to attract residents over the long-term, a boon for local retailers. More immediately, the Inland Empire expects a notable inventory increase in the second half of 2025. Fortunately, over 80 percent of this space was pre-leased as of June. Major retailers such as Trader Joe’s, Skyzone, and Crunch Fitness have expanded this year, yet net absorption is projected to be negative for a second straight year as large chain bankruptcies continue to drive space givebacks.