Fast-fashion retailer Shein has pulled off the sublease market its 1 million square feet of industrial space at 36500 Cherry Valley Blvd. in the Inland Empire, Calif., I-10 Logistics Center, according to Bisnow. The company initially secured the two-building, 1.8-million-square-foot complex in 2022 during its construction and has occupied the 800,000-square-foot warehouse since its 2023 opening.

Brookfield Properties purchased the Cherry Valley facilities in 2023 for $328.7 million from developers Shopoff Realty Investments and Artemis Real Estate Partners, The Real Deal reported. Shein had marketed the 1-million-square-foot space for sublease, but withdrew the listing recently, although it did not disclose plans for the facility.

The decision follows Shein’s ongoing U.S. logistics investments from last year. In February 2024, the company leased a 10,000-square-foot office in Bellevue, Wash., within the Seattle office market to serve as its U.S. fulfillment and logistics hub. Shein also rents space in Bellevue’s Key Center office tower (where Amazon operates) as part of its push to hire Amazon logistics executives.

Since early 2024, Shein has expanded its U.S. operations to accelerate deliveries and attract American buyers. The Wall Street Journal noted that Shein, Temu and TikTok are emerging as potential rivals to Amazon’s strong hold over e-commerce.

Inland Empire’s 7.8% Vacancy Rate Holds Steady, Nov-Dec 2024

Per CommercialEdge, the Inland Empire’s industrial vacancy rate held steady at 7.8% in December 2024, unchanged from November, but up sharply from less than 2% in 2022. This remains slightly below the national average of 8%, which has doubled in two years. Despite the softer market, new leases in the region command $3.01 per square foot, on average, surpassing existing rents.

At the same time, construction starts have declined significantly with 9.1 million square feet underway in December 2023 — down from 19.4 million square feet from a year earlier. However, the Inland Empire remains the second-most active industrial market in the Western U.S. by pipeline activity, trailing only Phoenix.