Every issue
A new lead feature every Friday, rotating through regulatory deep-dives, submarket spotlights, lease economics, and trade and supply chain. The reference data underneath is refreshed the same day.
Moreno Valley is redrawing your trucks’ route to the freeway. Your lease leaves you the bill.
Moreno Valley’s proposed truck route map, PEN26-0058, strips through-truck status from segments of nine streets, among them Perris Boulevard, Alessandro, Heacock, Frederick and Cactus, and concentrates trucks on SR-60 and I-215. The city’s own consultant puts the citywide result at 8,296 added truck miles a day, up 2.8%. On a 300,000 square foot building fronting Perris Boulevard with a quarter of its round trips heading east on SR-60, the added miles run about $294,000 a year, $0.98 a foot, 7.9% of IE East asking rent. The change takes no land, so the condemnation clause never fires, and paragraph 6.3 of the standard AIR lease leaves compliance with the tenant.
AB 98 can turn your expansion option into a building the state won’t let you build
Since January 1, 2026, Government Code 65098 treats an addition of 20% or more of a warehouse’s non-office square footage as an expanded logistics development. On a 200,000 square foot building with 10,000 feet of office, the line sits at 38,000 square feet, so a 50,000 square foot expansion right crosses it at 26.3%. Add the result and the combined 250,000 square feet pulls in the Tier 1 standards and a 300-foot dock setback where homes sit within 900 feet. The illustrated fallback, a 50,000 square foot satellite eight miles away, runs $379,659 a year, $1.90 per square foot, 15% of IE West asking rent.
Your 4% escalation is compounding into a market that fell 30%
Inland Empire triple-net industrial leases signed in 2023 started at a median $1.46 a foot and carry a median 4% annual step; 76% of the 2022–23 cohort escalates at 4% or more. The same comps signed this year start at $1.015. A 2023 tenant is now 62% above market, about $1.58 million over the last two years of a 100,000 square foot lease, with 625 Inland Empire leases rolling in 2027 and 575 in 2028.
Thirty days to put your building in a foreign-trade zone. Your lease is what stops you.
A usage-driven foreign-trade zone site is approved in thirty days, and Riverside County and San Bernardino County are both inside an approved service area. The federal application runs on the tenant’s lease, and the standard Inland Empire use and alterations clauses do not carry it. The weekly-entry saving alone is $135,512 a year, or $0.90 per square foot, on a 150,000 square foot building.
If you signed in 2022, your renewal option is the most expensive way to stay
Inland Empire market asking rent jumped 25.3% in 2022 and has fallen every year since its 2023 peak. The rent floor in a standard renewal option now prices a 2022-vintage lease about 26% above market, roughly $4.3 million over a five-year renewal on 250,000 square feet.
Your landlord's sale is a rent increase you never negotiated
Inland Empire industrial sales ran 8.7M SF in the first half, up 150% year over year. Each closing resets the property tax basis, and a NNN tenant pays it. For a 120,000 SF Jurupa Valley building that is about $158,970 a year, or $1.32 per square foot.
What Rule 2305 actually costs an Inland Empire warehouse tenant
South Coast AQMD Rule 2305 costs a 300,000 SF Inland Empire distribution tenant about $119,531 a year, or $0.40 per square foot. The WAIRE math, and the three lease terms to settle before you renew.
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