Inland Empire industrial market. Presented by Bobby Mendez Realty.Ontario’s Industrial Market Is on Fire

Inland Empire industrial market. Presented by Bobby Mendez Realty.

Ontario’s Industrial Market Is on Fire — Here’s What’s Driving It

The Inland Empire industrial market has always been a powerhouse, but Ontario, CA is officially stealing the spotlight. With record-low vacancies, high tenant demand, and new developments popping up faster than cold brew at a warehouse lunch break, the city is redefining what it means to be a logistics and distribution hub in Southern California.

Whether you're a landlord, investor, or business looking for space, understanding the current pulse of industrial real estate Ontario CA is critical — and that’s exactly what we’re diving into.

Why Ontario, CA Is the Hotspot for Industrial Growth

Ontario isn’t just conveniently located — it’s strategically unstoppable. It sits at the crossroads of major freeways, it’s home to its own international airport, and it's a magnet for logistics and supply chain operators. Add in robust zoning for industrial use and a business-friendly reputation, and you've got a market where square footage is practically gold.

Key demand drivers include:

• Proximity to Los Angeles ports

• Ontario International Airport for air freight

• Major trucking routes (I-10, I-15, SR-60)

• Expanding e-commerce and 3PL operations

• Limited supply in nearby metros

That demand has created a competitive and lucrative environment for both users and investors.

Vacancy Rates: Tight, Tight, Tight

If you were hoping to stumble into a deal on a whim, the market might have other plans. Vacancy rates for Ontario warehouse leasing currently hover around some of the lowest in the state — in many submarkets, under 2%. Spaces between 10,000–50,000 SF are getting snatched up quickly, and buildings over 100,000 SF rarely sit vacant for long.

This demand has edged up lease pricing and created urgency for tenants and brokers navigating the Inland Empire industrial market.

Lease Rates Are Rising — But So Are Opportunities

With vacancy plunging, lease rates have shot up accordingly. Average asking rates for industrial spaces in Ontario are higher than they were just two years ago, and renewal negotiations often include increases of 3–6% annually. Even so, tenants are choosing Ontario over L.A. County due to affordability, access, and transportation efficiency.

Landlords with vacant space are in a fantastic position. Long-term leases, credit tenants, and escalating rents are giving owners significant leverage. And for investors, multi-tenant warehouses and small-bay industrial are particularly desirable — the demand is simply consistent.

Who’s Leasing All This Space?

Not surprisingly, logistics and distribution dominate. But a broader mix of tenants is increasing activity:

• E-commerce fulfillment centers

• Construction and trades

• Manufacturing firms

• Medical supply distributors

• Local service companies

• Import/export operations

Smaller flex users are also competing for industrial condos and small freestanding facilities. And spaces with truck courts, dock-high doors, fenced yards, and freeway visibility lease especially fast.

New Developments Are Changing the Landscape

Although land is scarce, developers haven’t slowed down. Build-to-suit projects and speculative warehouses continue to reshape the area, especially along the I-10 and I-15 corridors.

Even more interesting — many older industrial buildings have been renovated with high clear heights, modern sprinkler systems, fresh parking layouts, and optimized loading. That means both new construction and repositioned assets are drawing tenant interest.

Owner-Users vs. Investors: What’s the Play?

Owner-user acquisitions in Ontario are heating up as businesses attempt to hedge against rising rental prices. But investors aren’t backing down — especially on multi-tenant or value-add properties near prime logistics corridors.

If you're watching the broader regional picture, be sure to check out an upcoming article: “Riverside’s Shifting Industrial Market: Owner-User vs Investor Opportunities.” Riverside is experiencing its own wave of activity that ties directly into Ontario’s growth, and the two cities are increasingly connected in terms of pricing and demand.

Small-Bay and Mid-Size Warehouses Are in Short Supply

Large warehouses are still king, but the biggest squeeze is in mid-size and entrepreneurial spaces between 5,000–30,000 SF. Local businesses, tradesmen, and suppliers are competing heavily for these properties — especially those with yard space or proximity to the 10 freeway.

Investors who overlooked smaller product types a few years ago are circling back and scooping them up quickly.

Transportation Access = Leasing Power

One of Ontario’s greatest strengths is accessibility. Tenants want visibility, convenience, and mobility — and Ontario delivers:

• Ontario International Airport: Driving air freight leasing demand

• I-10 / I-15 / SR-60 access: Trucking networks thrive here

• Proximity to BNSF and UPS hubs: A logistics jackpot

• Close to Los Angeles ports: Without the Los Angeles price tag

Spaces with trailer parking, gated yards, or cross-dock configurations are especially competitive.

What Tenants Are Prioritizing in Leases Now

Features matter more than ever. Businesses signing leases today want:

• 24'+ clear heights

• Dock-high and grade-level loading

• ESFR sprinklers

• Secure gated yards

• Office-to-warehouse ratios under 15%

• EV fleet parking potential

• Fiber connectivity

• Immediate freeway access

If landlords can deliver these, they’re positioned to attract higher credit tenants at stronger rates.

Investment Outlook: Strong and Still Climbing

Institutional buyers continue to pour capital into industrial real estate Ontario CA. Cap rates remain compressed, especially for Class A facilities with long-term leases. Owner-users are bidding on available listings, while private investors pursue flex and mid-size product for cash flow.

Even with rising interest rates across commercial assets, the industrial sector in Ontario has remained resilient — and in some submarkets, accelerated.

Where Does Bobby Mendez Realty Fit In?

When navigating a market this competitive, experience and strategy matter. Bobby Mendez Realty specializes in representing landlords, tenants, sellers, and investors across the Inland Empire industrial landscape.

From pricing guidance to negotiations, off-market deals to site selection, we help clients secure industrial spaces that fit their operational and financial goals — whether that’s leasing a warehouse or acquiring income property.

Final Take: Ontario Isn’t Slowing Down

Ontario has officially cemented itself as a core driver of the Inland Empire industrial market. Demand is high, vacancies are low, and pricing continues to climb. Businesses who need space are moving fast, and investors are doubling down.

Up next in the geo-series, we’ll zoom in on a neighboring powerhouse:Riverside’s Shifting Industrial Market: Owner-User vs Investor Opportunities

That market plays an essential role in shaping the next wave of growth — and if you’re tracking Ontario, you’ll definitely want to follow Riverside next.