Research & Forecast Report - Inland Empire
The total vacancy rate for the Inland Empire office market decreased 10 basis points in the third quarter of 2019 to 12.5% from 12.6% last quarter. The decrease in vacancy stemmed from positive movement in San Bernardino (down 110 basis points), Ontario (down 60 basis points) and Riverside (down 40 basis points) submarkets. The quarter closed with absorption recording 14,700 square feet, while leasing activity recorded 213,700 square feet, a number that ranks below the three-year average of 281,500 square feet.
The weighted average asking rental rate increased $0.03 during the second quarter to $1.91 per square foot (PSF) full service gross (FSG). For a historical perspective, the asking rental rate one year ago recorded $1.80 PSF FSG.
Three of eight submarkets in the Inland Empire office market witnessed positive net absorption, with San Bernardino recording the greatest at 52,500 square feet. All building classes recorded positive absorption except Class B. Class A recording the highest at 94,400 square feet followed by Class C at 16,800 square feet, while Class B had the most negative absorption at 96,500 square feet.