Population
2,418,185
Growth (5Y)
+9.4%
Median Income
$64,000
Metro GDP
$221B
Market Overview
The Inland Empire — encompassing Riverside and San Bernardino counties — has evolved from Southern California's affordable bedroom community into one of the nation's most critical logistics and distribution markets. Over 2.4 million residents make it larger than most US metros, yet NNN cap rates of 5.0–6.5% remain well above coastal California, offering outstanding yield relative to asset quality. The logistics employment boom — driven by Amazon, UPS, and FedEx's massive IE distribution investments — has created a robust working-class consumer base that supports AutoZone, O'Reilly, McDonald's, and convenience retail at high volumes.
Key Highlights
Inland Empire is the nation's largest logistics hub — more warehouse square footage than any US market
LA/OC housing unaffordability continues driving population east at record rates
Amazon, FedEx, and UPS distribution center concentration creates massive blue-collar employment
Higher cap rates than coastal California with identical tenant credit quality and guarantees
How the Market Has Evolved (2020–2025)
The Inland Empire's NNN market experienced perhaps the most dramatic transformation of any California market from 2020 to 2025. The COVID-era e-commerce explosion triggered a warehouse construction boom that created hundreds of thousands of direct logistics jobs. Population surged 9.4% as LA and OC residents moved inland for housing affordability. These two forces — employment growth and population inflow — drove retail demand well beyond existing supply, triggering aggressive NNN development from AutoZone, O'Reilly, McDonald's, and Burger King. Cap rates compressed from 5.75–7.25% in 2020 to 5.0–6.5% by 2025. The Ontario, Fontana, and Murrieta submarkets saw the most significant NNN development activity. By 2024, major institutional NNN buyers who previously ignored the Inland Empire were actively competing for assets in the market.
Why Invest in Riverside / Inland Empire
- 1California's best NNN yield relative to asset quality — 5.0–6.5% with investment-grade tenants
- 2Nation's fastest-growing logistics hub creating durable blue-collar employment and retail demand
- 3LA housing costs continue driving population and spending power eastward
- 4New NNN development pipeline brings institutional-quality assets to a market with rising investor interest
Recent NNN Activity
"2025 NNN activity is concentrated in the Murrieta, Menifee, and Ontario Ranch corridors, where new development has brought Starbucks, Chick-fil-A, and Dutch Bros drive-thrus to rapidly growing suburban communities. AutoZone and O'Reilly continue their aggressive Inland Empire expansion with 15-year absolute NNN leases."
NNN Snapshot
Cap Rate Range
5% - 6.5%
Price Range
$1.7M - $4.8M
Avg Lease Term
13 Years
Unemployment Rate
4.6%
Active NNN Tenants
McDonald'sStarbucksDollar GeneralAutoZoneO'Reilly Auto PartsBurger King7-Eleven
Major Employers
AmazonUPSFedExStater Bros.UC RiversideLoma Linda University HealthKaiser Permanente
Find NNN Properties in Riverside / Inland Empire
Our advisors have exclusive, off-market NNN inventory in the Riverside / Inland Empire market right now. Contact us to see what's available before it hits the public market.