Retail Construction Analysis

Inland Empire - CA

Rudy Martinez

1/28/20252 min read

Retail development in the Inland Empire has been relatively steady over the past decade, with most growth happening in areas where housing development has been more active. Since 2018, new retail construction has slowed, and in both 2023 and 2024, deliveries slightly underperformed the market’s 10-year average, with around 700,000 square feet of new space completed each year. Looking ahead to 2025, a similar trend is expected, with another 700,000 square feet on track for completion.

As of early 2025, there are 690,000 square feet of retail space under construction across the region. Construction activity picked up slightly in 2024, with several new projects breaking ground. For example, in Highland, just west of the 210 Freeway, Greenspot Crossings began construction on 150,000 square feet of new retail space, which is now leasing. The project also includes 110 multifamily and townhome units. Major tenants like Starbucks, Ono Hawaiian BBQ, Chipotle, and Dave’s Hot Chicken have already pre-leased pads in the center, with the main anchor space spanning 46,400 square feet.

South Riverside County has also seen a boost in retail development. In Murrieta, at The Vineyard, located near Vista Murrieta High School and west of the I-215, a 151,000-square-foot Costco and a 22,000-square-foot Aldi opened in 2023. There’s still one smaller pad building available for lease or purchase. Meanwhile, across the freeway at The Orchard Center, construction is underway on a 107,900-square-foot Home Depot and a 25,000-square-foot Ross Dress for Less. There are also two proposed drive-thru pad sites available at that location.

In Menifee, the Krikorian Premiere Theatres had started developing a 120,000-square-foot community center anchored by a 14-screen movie theater. However, work at the site stopped in 2020 due to the pandemic and never resumed. In September 2023, the city issued a notice to demolish the unfinished theater building. That said, construction on the retail pads at the site has restarted.

One notable completion in 2024 was the Town Center at the Preserve in Chino. This 170,000-square-foot retail development is part of a larger master-planned community and marks the area’s first major retail project in over five years. Developed by the Lewis Companies, the center’s 55,500-square-foot anchor space was pre-leased to Stater Bros. supermarket.

Meanwhile, the Carousel Mall in San Bernardino, which spanned roughly 900,000 square feet, was demolished in late 2023. Once a thriving hub, the mall had become outdated as suburban growth and newer malls drew shoppers elsewhere. Now, Renaissance Downtowns USA and ICO Real Estate Group are set to redevelop the site, with plans for 2,000 to 3,500 residential units alongside retail and office spaces. While demolitions of this scale are rare, they were a notable exception in 2024.

Source: CoStar Research