Finally, retail has also played a significant role in the business growth. Like healthcare, this industry has been fueled by population growth. “Retail grew quite a bit as the region's population grew and purchasing power increased over the last several years,” says Kleinhenz. “This occurred despite the recent challenges this sector has faced in the last year or so as is directly confronts the growing presence of online distribution.”

The business growth has a significant impact on the commercial real estate sector. From the start of 2012 through first quarter 2019,  Riverside County has a 167% increase in construction and San Bernardino had a 136% increase in construction. By comparison, the State of California has a 111% increase in construction activity in the same time period. “Office and industrial segments of the market have responded to growth in the region in recent quarters and years, as has retail. Vacancy rates have improved as lease rates have grown,” says Kleinhenz. “Industrial in particular has performed well as the region has served as a critical hub for logistics and distribution both nationally and locally.”

While the Inland Empire job and business market has been on fire for the last several years, the momentum may be slowing. “The region's job creation machine has slowed in recent quarters,” says Kleinhenz. “Although the Inland Empire's labor force is growing faster than the other counties in Southern California, it has slowed as affordability has become more of a concern. Moreover, Inland Empire employers have to compete with the other counties for that labor force, but often pay lower wages compared to L.A. and Orange County. So job growth will drop below 2% for the first time since early in the decade, and as such, it will line up more closely with statewide growth for the first time in many years.”