Inland Empire Warehouses: Market Insights, Trends and Opportunities
Ryan Shelton serves as managing director for the Southwest and Southern California market officer at Link Logistics, where he oversees leasing for distribution centers and logistics facilities across one of the nation's largest industrial real estate markets. With extensive experience in Southern California industrial real estate, Ryan helps companies navigate the complexities of the Inland Empire warehouse market, connecting businesses with strategically positioned distribution space that supports West Coast operations. He works with a diverse range of customers, from e-commerce giants to manufacturers and third-party logistics providers leveraging the region's proximity to major ports and population centers. Here, Ryan discusses current market dynamics, emerging trends in Inland Empire warehouses and industrial real estate, and what makes the Inland Empire attractive for businesses seeking distribution space.
What's driving demand for industrial real estate in the Inland Empire right now?
The Inland Empire functions as a national distribution hub, not just a regional market—and that distinction is critical. Over 30 percent of all U.S. waterborne trade flows through the ports of Los Angeles and Long Beach, making Southern California the primary gateway for goods movement across the country. Major retailers headquartered anywhere from Minnesota to Georgia maintain significant distribution operations in the Inland Empire because proximity to these ports is essential for their supply chains. This creates consistent demand for warehouse space from national corporate users seeking West Coast distribution capacity.
The market divides into Inland Empire West and Inland Empire East. There is plenty of overlap between the two, but each also serves distinct needs. The western portion tends to be more infill, with tighter fundamentals due to closer proximity to the Greater Los Angeles market, the ports and major population centers. The eastern portion typically accommodates larger facilities where companies can build bigger distribution centers at lower costs, making it attractive for operations requiring substantial square footage. Both areas benefit from exceptional infrastructure including BNSF and Union Pacific rail systems that support transcontinental freight movement, plus highway networks that provide comprehensive trucking access throughout the West Coast and beyond.
The region also offers a labor supply capable of supporting the million-plus-square-foot distribution hubs that major corporations require—a capacity many other markets simply cannot match. Depending on the starting point, Inland Empire facilities offer access to roughly 23 million people within about an hour’s drive across the Inland Empire, Orange County, large portions of Los Angeles County and parts of northern San Diego County.
In addition to supporting delivery speed, this means businesses have access to the workforce depth necessary for large-scale logistics operations. The Inland Empire's inventory skews heavily toward Class-A, state-of-the-art facilities, which aligns with what major corporate users demand for modern warehouse and distribution operations.
What's one major trend or development you're seeing in the Inland Empire warehouse market that businesses should know about?
Asian third-party logistics providers have emerged as a dominant force, driving significant leasing activity in the market. This growth stems from the expansion of alternative e-commerce platforms beyond traditional channels, as well as growth within established marketplaces. These 3PLs handle logistics for products manufactured overseas and distributed through various online retail channels, including furniture and home goods that rely heavily on imported inventory. While tariff discussions have created some uncertainty, these operators have generally continued their expansion plans, viewing trade negotiations as manageable business factors rather than fundamental obstacles to their operations.
Beyond e-commerce logistics, corporate America is showing renewed interest in the market after roughly two years of limited activity. Many major companies overextended during the pandemic, taking excess warehouse space when real estate pricing peaked. That created a period of market correction as these businesses worked through surplus capacity. Now, with industrial space pricing having moderated significantly from peak levels and continuing to stabilize, national retailers and manufacturers are returning to evaluate new distribution requirements in Southern California.
Build-to-suit activity is also increasing, particularly among large corporate users investing heavily in automation and specialized technology. Modern warehouse operations often require custom configurations—whether for automated storage and retrieval systems, specialized rail infrastructure for inbound freight, or other unique operational requirements that standard speculative buildings cannot accommodate. As these technology investments grow, more companies are seeking purpose-built facilities where they control the specifications and can optimize efficiency for their specific distribution strategies. Clear heights of 40 feet and above have become standard requirements for large-format industrial properties, driven by racking systems that maximize cubic storage capacity and improve inventory efficiency compared to older 32-foot-clear facilities.
How does Link Logistics support companies looking for warehouse space in the Inland Empire?
Link Logistics operates as a national platform, which creates unique advantages for companies seeking industrial space for rent in the Inland Empire. Because this market serves national distribution requirements rather than just regional needs, we regularly work with corporate real estate executives headquartered across the country who need Southern California warehouse properties as part of their broader logistics networks. Our Customer Solutions team maintains relationships with these decision-makers nationally, allowing us to connect their West Coast requirements with our Inland Empire portfolio efficiently. When a major retailer based in Atlanta or a manufacturer headquartered in the Midwest needs to establish or expand their Southern California distribution hub, we can provide options and execute solutions quickly.
Our local market expertise combined with this national connectivity allows us to serve diverse customer needs—from companies requiring specialized rail-served facilities to those seeking Class-A warehouse space with modern clear heights and advanced automation capabilities. The Inland Empire's role as a gateway market means businesses looking for logistics real estate here are often executing national supply chain strategies. Link Logistics’ platform is structured to support those larger objectives while delivering local market execution.
Looking ahead, what opportunities do you see for businesses considering the Inland Empire for their warehouse and logistics operations?
The fundamental drivers that established the Inland Empire as a premier logistics market remain firmly in place—port proximity, extensive rail and highway infrastructure, substantial labor supply and access to major West Coast population centers. What's changed is the pricing environment. After significant rent growth made the Inland Empire one of the country's hottest industrial real estate markets from about 2020 through 2022, the market has undergone a substantial correction. Rental rates have declined considerably from peak levels and have now largely stabilized, creating an attractive entry point for companies making long-term real estate commitments.
Both landlords and tenants increasingly view the market correction as largely complete, which is bringing requirements off the sidelines. Businesses that secure warehouse space for rent now can lock in favorable lease terms for several years, essentially capturing bottom-of-cycle pricing for the duration of their lease. This represents a significant opportunity compared to companies that committed space during the 2021-2022 peak. The stabilization also provides confidence for businesses planning major distribution investments—whether establishing their first West Coast presence or expanding existing Southern California operations—that they're entering at a rational point in the cycle rather than at inflated valuations. Combined with the Inland Empire's unmatched logistics infrastructure and position as the primary gateway for imports entering the western United States, the current market conditions create compelling opportunities for companies across the country seeking industrial properties and supply chain logistics properties in Southern California.
Explore available warehouse space in the Inland Empire to learn more about industrial real estate opportunities in the region.
