In the first quarter, the Inland Empire vacancy rate declined by 20 basis points (bps) from the previous quarter to 8.5%, though it remained 50 bps higher than the 8.0% rate recorded a year ago. Net absorption totaled 3.4 million square feet (msf), driven by occupier move-ins between 200,000 and 500,000 square feet (sf). The Inland Empire West posted the highest net absorption at 3.7, while the Inland Empire East market recorded 1.1 msf. New supply hit a low of 1.6 msf, down 70,000 sf from the previous quarter. Quarterly deliveries previously dropped this low in Q4 2021, when only 1.5 msf was recorded. With construction activity expected to remain subdued in the near term, vacancy rates are likely to continue trending downward.