Chino Industrial Market Report 2026

Chino has quietly become one of the most competitive industrial submarkets in the Inland Empire. Positioned at the crossroads of the 60, 71, and 91 freeways, the city offers logistics tenants unmatched access to Southern California's distribution spine — and landlords have taken notice.

Market Overview

Chino's industrial inventory spans approximately 85 million square feet, anchored by a core of big-box distribution centers along the 60 Freeway corridor and a dense cluster of multi-tenant light industrial parks in the south end near Chino Airport. The market caters to a wide range of users — from Fortune 500 third-party logistics providers occupying 500,000+ SF facilities to local manufacturers and distributors in 10,000–50,000 SF suites.

The city's industrial-friendly zoning and relatively newer building stock (much of the inventory was built between 2000 and 2020) make it a perennial target for both institutional landlords and private investors looking to acquire well-leased assets in a supply-constrained environment.

Vacancy & Absorption

Vacancy in Chino crept upward through 2025 as several large-format spaces — notably two 250,000+ SF blocks in the Airport Business Center — were returned to the market following lease expirations. Despite this, the submarket has outperformed the broader Inland Empire West, where vacancy has climbed closer to 7%.

Net absorption remains positive. Chino has benefited from a wave of mid-size occupier demand (50,000–150,000 SF) as logistics companies right-size their footprints after the overshooting of 2021–2022. Several move-ins from Ontario and Fontana have boosted absorption figures, as tenants seeking lower rents migrate west along the 60 corridor.

Rental Rate Trends

Asking rents for Class A distribution space in Chino currently average $1.38–$1.52 per SF per month NNN, a modest pullback from the peak of $1.65/SF seen in mid-2023. Landlords with recently constructed, LEED-certified facilities continue to command premium rates, while older 1990s-vintage buildings have seen more pronounced softening.

For multi-tenant light industrial (under 30,000 SF), rents remain stickier, averaging $1.55–$1.80/SF NNN, as supply in that size range is inherently limited by the difficulty of subdividing big-box buildings. Small-bay users continue to face a constrained market.

Tenant improvement allowances have increased as landlords compete for credit tenants — a meaningful shift from 2022 when buildings were leasing with minimal concessions. Expect $30–$50/SF TI on new 5-year deals for larger users.

Demand Drivers

Chino's demand base is diversified across several sectors that insulate the submarket from single-industry downturns:

• E-commerce fulfillment: Last-mile and regional distribution for the 15M+ consumer population within a 50-mile radius remains a primary driver, with several national 3PL operators expanding footprints.
• Cold storage & food distribution: Chino's cold-storage inventory is among the most concentrated in the IE, supported by proximity to the Ontario Airport cold chain and a growing base of food & beverage manufacturers.
• Advanced manufacturing: Electric vehicle component suppliers, aerospace subcontractors, and medical device manufacturers have been active, attracted by the skilled labor pool in the broader Ontario–Chino corridor.
• Building materials & construction supply: Inland Empire's continued residential construction activity sustains steady demand from lumber yards, tile distributors, and related trades.

Investment Outlook

Cap rates for stabilized Chino industrial have compressed to the 5.0–5.75% range for Class A assets with credit tenancy, up from the sub-4.5% highs of 2022 but still reflecting strong investor demand for well-located IE product. Value-add opportunities — mid-2000s vintage buildings with below-market leases rolling in 12–24 months — are trading at 6.0–6.5% going-in cap rates, attracting private equity buyers comfortable underwriting lease-up risk.

1031 exchange buyers from coastal California markets continue to be active, drawn to Chino's yield premium over Los Angeles Basin industrial product. Sales volume in Q1 2026 was up 18% year-over-year as buyers and sellers converged on a price discovery range after two years of bid-ask spread stalemates.

2026 Forecast

We expect Chino vacancy to stabilize near 4.5–5.0% through the remainder of 2026 as new deliveries taper (only one speculative project of 180,000 SF is currently under construction) and demand from mid-size logistics users continues to absorb available space. Rental rates are unlikely to return to 2023 peaks in the near term, but the steep rent correction appears to be over — expect modest growth of 2–4% on new leases signed in H2 2026.

For owners, 2026 represents a favorable window to execute lease renewals ahead of the next construction cycle. For buyers, stabilized assets at current cap rates offer compelling long-term returns relative to alternative asset classes. Speculative development economics remain challenging given construction costs, suggesting new supply will be limited and the current vacancy correction will be short-lived.