Apex Real Estate Services · DRE #01422904 · CCIM-Led
Hemet, CA · (951) 977-3251
Redlands commercial real estate in 2026 is led by an industrial rebound. CoStar’s Redlands/Loma Linda submarket ranked third of 15 Inland Empire submarkets for 12-month industrial absorption, office vacancy is under 3%, and the City Council has introduced a ban on new large warehouses. This guide covers industrial, office and retail property in Redlands, CA.
Redlands commercial real estate in 2026 pairs a recovering industrial market with tight office space and steady retail. CoStar’s Redlands/Loma Linda submarket shows 8.2% industrial vacancy after 1.6 million SF of net absorption, 2.9% office vacancy and 6.5% retail vacancy, with nothing under construction and new warehouses facing a proposed citywide ban.
Redlands has 73,488 residents and covers 36 square miles of San Bernardino County, per the City. One caution: a CoStar submarket is not a city boundary. CoStar’s Redlands/Loma Linda submarket also covers Loma Linda and parts of Yucaipa, so read every statistic on commercial real estate in Redlands, CA as a submarket figure, not a city-limit number.
Vacancy runs below the Inland Empire (IE) rate in office and industrial and slightly above it in retail, and no property type has anything under construction.
| Metric | Industrial | Office | Retail |
|---|---|---|---|
| Inventory | ~33.9M SF | ~4.1M SF | ~10.6M SF |
| Vacancy | 8.2% (IE 8.7%) | 2.9% (IE 4.7%) | 6.5% (IE 6.0%) |
| Availability | 13.3% (IE 12.5%) | 3.7% (IE 5.9%) | 5.6% (IE 6.6%) |
| Asking rent, monthly | $0.90/SF (IE $1.03) | $2.66/SF (IE $2.57) | $2.31/SF (IE $2.29) |
| Rent change, 12 mo | −1.5% (IE −0.9%) | +2.6% (IE +3.0%) | +2.4% (IE +3.1%) |
| Under construction | None | None | None |
| Sales, 12 mo | 5 · $71.5M | 16 · $30.1M | 28 · $48.2M |
| Price per SF | $245 (IE $258) | $199 (IE $213) | $290 (IE $289) |
| Market cap rate | 4.8% (IE 4.9%) | 8.3% (IE 8.4%) | 6.3% (IE 6.5%) |
On an annual basis, CoStar puts rents at about $10.80 per SF for industrial, $32.00 for office and $28.00 for retail. Regional detail: the Inland Empire industrial market report, the Inland Empire office market and the Inland Empire retail market report.
Yes. CoStar’s Redlands/Loma Linda submarket absorbed about 1.6 million SF of industrial space over 12 months, third-most of 15 Inland Empire submarkets, and vacancy fell 3.3 percentage points to 8.2%.
That reverses 2025, when 927,830 SF delivered and occupied space fell by 365,294 SF. Redlands industrial real estate, as CoStar measures the submarket, totals about 33.9 million SF, mostly logistics buildings. Vacancy compares with a five-year average of 7.5%, and CoStar forecasts 7.7% by year-end. Availability, which counts space marketed for lease even if still occupied, is 13.3%; compare other submarkets in our guide to warehouse availability by submarket.
No new supply underway. Nothing is under construction, against a 10-year average of 590,000 SF. CoStar tracks about 427,000 SF of proposed industrial space over the next eight quarters. Source: CoStar, Q3 2026.
Big blocks moved. CoStar records leases of the full 289,683-SF building at 1898 Marigold Ave and the full 104,072-SF Mountain View Industrial Center at 2470 W. Lugonia Ave over the past 12 months. Both were on Community Forward Redlands’ April 2026 list of large available Redlands warehouses.
Rents have softened: $10.80 per SF a year ($0.90 monthly), down 1.5% over 12 months versus 0.9% market-wide, with a 1.4% decline forecast for 2026. For tenants that means room to negotiate; for owners, no new construction limits competing supply. Whichever side you are on, see what an industrial leasing broker does.
Not a new one, if the ordinance is adopted as introduced. On October 6, 2026 the City Council voted 5–0 to introduce Ordinance No. 3002, which would prohibit new warehouses citywide; it returns for final adoption at a future council meeting.
Status as of October 14, 2026. Per Community Forward Redlands’ October 8, 2026 report, the council voted 5–0 on October 6 to introduce Ordinance No. 3002, which would prohibit new warehouses of 50,000 square feet or more, or those with more than five truck docks, citywide. The ordinance returns for final adoption at a future council meeting; confirm the current status with the City of Redlands.
The council voted 5–0 in November 2025 to have staff draft a citywide ban, and the Planning Commission voted 5–1 in May 2026 to recommend Ordinance Text Amendment No. 372. As Community Forward Redlands reported in September and October 2026, the proposal would work like this:
The carve-out for previously approved projects applied to two projects, including a 193,469-SF Prologis warehouse on Tennessee Street, per May 2026 reporting. In April 2026 reporting, one speaker warned of competition from the county “donut hole,” so confirm which jurisdiction governs a parcel. Statewide rules are in our guide to California’s AB 98 warehouse law.
Apex is not a law firm. Confirm zoning with the City of Redlands and your attorney before you buy, lease or entitle a site.
Industrial sales are few but large. Over 12 months CoStar counts 5 industrial sales totaling $71.5 million, 16 office sales totaling $30.1 million and 28 retail sales totaling $48.2 million in the submarket.
The headline trade was a 356,791-SF warehouse at 1101 California St, built in 2025, which sold on June 18, 2026 for $63.3 million ($177 per SF) while 100% vacant. CoStar lists North Palisade Partners as its developer, and Community Forward Redlands had listed that developer’s California Street warehouse in Redlands, at the former Splash Kingdom site, as available in April 2026. That price sits well below CoStar’s $245-per-SF industrial estimate, a gap that likely reflects lease-up risk on a vacant building.
Estimated market cap rates are 4.8% for industrial, 8.3% for office and 6.3% for retail. Any commercial property for sale in Redlands prices on its own leases and condition, so start with a CCIM-backed opinion of value.
Values are rising on the tax roll, too. Redlands’ 2024–25 net taxable assessed value rose about 8.06%, with industrial and commercial valuations each up 5.6% and vacant land up 17%.
Almost nothing new gets built. CoStar’s Redlands/Loma Linda office submarket has 2.9% vacancy, fourth-lowest of 15 Inland Empire office submarkets, and its 10-year average under construction is just 12,000 SF.
Vacancy rose 0.9 percentage point over the year on 36,000 SF of negative net absorption, and CoStar forecasts 3.1% by year-end. For anyone seeking Redlands office space for lease, about 150,000 SF is available, a 3.7% availability rate. Asking rents average about $32.00 per SF a year, above the $31.00 Inland Empire average.
Several top employers are healthcare and technology organizations, including Esri, Redlands Community Hospital and Kaiser Permanente Medical Offices. See the Inland Empire office market for metro context.
In strip centers and downtown. CoStar’s Redlands/Loma Linda retail submarket has 6.5% vacancy, with strip centers at 3.0%, neighborhood centers at 5.6% and power centers at 9.3%.
About 590,000 SF is available. Market rent is $28.00 per SF a year, up 2.4% over 12 months, and CoStar forecasts 6.6% vacancy by year-end.
Downtown has added space. The City lists the Redlands Food Hall in the historic MOD Packinghouse, 11,807 SF of new Railway District buildings at 333 Orange Street and the 36,825-SF Third Street Retail Building among projects completed in fiscal 2025.
Citrus Plaza and Mountain Grove Plaza sit in the county pocket the city surrounds. Anyone weighing retail space for lease in Redlands, CA should compare new downtown space with older centers; see the Inland Empire retail market report.
Education, healthcare, software and logistics. The City’s FY2025 financial report lists a school district, Esri and a hospital as the top three employers, and about 37,000 people work within city limits, per EDD data.
| Employer | Employees |
|---|---|
| Redlands Unified School District | 2,433 |
| Esri | 2,416 |
| Redlands Community Hospital | 1,847 |
| Optum (Beaver Medical Group & Epic Mgmt) | 1,000 |
| City of Redlands | 539 |
| Amazon Fulfillment Center (Redlands) | 526 |
Redlands also surrounds an unincorporated county pocket, the donut hole, with distribution centers including a Burlington Coat Factory Distribution Center (742 workers). The City generally receives 90% of the sales and use tax generated there.
Redlands sits off Interstate 10, and the City notes it is close to the 210, 215, 91 and 15 freeways. Metrolink’s Arrow rail line links Redlands with San Bernardino.
The City places Redlands 63 miles east of Los Angeles. At its western edge it meets San Bernardino to the west across Mountain View Avenue, with Loma Linda to the south across I-10, per a state CEQA filing.
Metrolink says Arrow will have up to 42 trains a day on its nine-mile corridor, with Redlands stops at Esri Station, Downtown Station and University Station. The City describes the new Railway District buildings on Orange Street as expanding its rail-adjacent mixed-use core; Arrow’s Downtown Station is at 351 Orange Street.
Apex represents tenants, landlords, buyers and sellers of industrial, office and retail property in Redlands and across the Inland Empire.
Engagements are led by Robert Mendieta Jr., CCIM, Associate Broker, Commercial Division, who brings more than 20 years of commercial real estate experience. Comparing markets? See Riverside commercial real estate and Fontana commercial real estate. For another comparison, see commercial real estate in Rancho Cucamonga.
It depends on property type. In CoStar’s Redlands/Loma Linda submarket, industrial vacancy fell to 8.2% on strong absorption, office vacancy is 2.9% and retail vacancy is 6.5%, with nothing under construction.
CoStar reports 8.2% in its Redlands/Loma Linda submarket as of Q3 2026, below the 8.7% Inland Empire rate. The submarket also covers Loma Linda and parts of Yucaipa.
Not yet. On October 6, 2026 the City Council voted 5–0 to introduce Ordinance No. 3002, which would prohibit new warehouses of 50,000 square feet or more, or with more than five truck docks, citywide. It returns for final adoption at a future council meeting, per Community Forward Redlands.
CoStar’s Q3 2026 market pricing for the Redlands/Loma Linda submarket is $245 per SF for industrial, $199 for office and $290 for retail. Individual properties price on their own leases and condition.
The City’s FY2025 financial report lists Redlands Unified School District (2,433 employees), Esri (2,416) and Redlands Community Hospital (1,847) as the top three.
Yes. Metrolink’s Arrow service links San Bernardino and Redlands on a nine-mile corridor, stopping at Esri Station, Downtown Station and University Station in Redlands, and Metrolink says it will have up to 42 trains a day.
It is an unincorporated San Bernardino County pocket surrounded by Redlands, containing Citrus Plaza, Mountain Grove Plaza and distribution centers. The City generally receives 90% of the sales and use tax generated there.
Leasing, buying, selling or holding in Redlands? Tell us the property type, size and timing for a CCIM-led read on your options.
Free consult · No obligation · Office: 3750 E. Florida Ave Suite A, Hemet, CA 92544
Market statistics are Apex’s analysis of CoStar data (Q3 2026). Source: CoStar.
Apex Real Estate Services · Robert Mendieta Jr., CCIM · Associate Broker · Commercial Division · DRE #01422904 · Joseph Lombera · Commercial Agent + CMO · DRE #01971957 · 3750 E. Florida Ave Suite A, Hemet, CA 92544 · (951) 977-3251. Last updated: October 14, 2026. Figures describe CoStar submarkets, not city limits. Apex is not a law, tax or accounting firm; nothing here is legal, tax or investment advice.
