The Inland Empire’s San Bernardino and Riverside Counties hold approximately 1 billion square feet of warehouse space — a figure that grew from 22.6 million square feet in 1980. The sector’s cycle is now in a documented correction, creating identifiable credit needs for operators who hold real collateral.
As of 2023, the Inland Empire holds approximately 1 billion square feet of industrial warehouse space. Transportation, distribution, and logistics (TDL) is the primary employment sector in San Bernardino County and the second-largest in Riverside County, according to a February 2024 UC Riverside research report. At its December 2022 peak, the sector employed 284,000 workers — 62,500 more than in February 2020.
The correction since then is documented. Inland Empire industrial vacancy reached 8.8% in Q2 2026, up 50 basis points from the prior quarter, with net absorption remaining negative and occupancy losses totaling 3.8 million square feet through mid-year. Vacant sublease space stood at approximately 13.1 million square feet as of Q2 2024 — a record at that time, and 214% higher than Q2 2023 — as logistics operators who over-leased during the e-commerce boom returned excess space to the market. Logistics employment fell to just below 265,000 workers after the December 2022 peak, a loss of nearly 20,000 positions; the ten-year employment trend in San Bernardino County remains +73%, but the short-cycle drawdown has tightened cash flow across the sector.
South Coast AQMD adopted Rule 2305, the Warehouse Indirect Source Rule (ISR), on May 7, 2021. The rule applies to warehouses larger than 100,000 square feet and requires operators to accumulate annual WAIRE (Warehouse Actions and Investments to Reduce Emissions) points, calculated from verifiable truck-trip data using Weighted Annual Truck Trips (WATTs). Operators who fall short face mitigation fees of $1,000 per WAIRE point — amounts that can run into millions of dollars.
South Coast AQMD estimates the rule affects approximately 4,000 warehouses in the South Coast Air Basin, with an upper-bound aggregate compliance cost of $979 million annually. For multi-facility operators, compliance expenditures fall at specific reporting intervals that may not coincide with lease income or capital deployment — a predictable gap where short-term collateral-based credit has a defined function.
Ontario International Airport (ONT) reported combined air freight and mail growth of 5.5% in 2024 over 2023, reaching the highest level since the pandemic surge and confirming ONT’s standing as a top-10 U.S. cargo hub. Passenger volume reached 7,084,864 in 2024 — 10.2% above 2023 and 27% above pre-pandemic 2019 levels — making ONT the fastest-growing medium- and large-size airport in California, a 67% increase in passengers since 2016 when the airport transferred to local control. These figures reflect the throughput that drives demand for adjacent logistics capacity.
Over the five years prior to 2024, the Inland Empire recorded more than 110 economic-incentive transactions totaling more than $200 million, averaging approximately $25,500 per job created. The primary program is the California Competes Tax Credit, a discretionary, non-refundable income tax credit for businesses creating new jobs and making capital investments. The program was extended through 2028 with $120 million in available credits, with applications accepted only during three designated windows per year. Because the credit is non-refundable and awarded on a discretionary basis, a company that wins one still faces the full capital outlay before any tax offset applies — a sequence where collateral-based bridge credit can serve a practical function.
CaLuxeLoans is an asset-backed lending desk. We evaluate tangible collateral — equipment, inventory, valuables, and similar assets — and connect qualified borrowers with capital through licensed lender partners. Loan amounts and terms are set by assessed collateral value at the time of review; nothing on this page constitutes a loan offer or a guarantee of approval. For a full description of the process, see How It Works. For program terms and eligibility criteria, see our FAQ and Disclosures.
Borrowers in adjacent markets may find relevant context on our Los Angeles and San Gabriel Valley pages.
Loans are originated by licensed lender partners. Loan offers, terms, rates and final decisions are made by the originating licensed lender at appraisal — figures shown here are general guidance, not loan offers.
Last reviewed August 16, 2026.
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