Inland Empire Office Market Q4 2014 Review

Posted on March 24, 2015 ยท Posted in Uncategorized

The Riverside – San Bernardino area’s office market had the best year since 2007 but there is still ground to be made up before market indicators approach pre-recession levels. Asking rates grew but are still $0.23 cents below 2007 levels and a lot of lower rated product is still vacant since businesses used the area’s high vacancy rates and low rents to upgrade to Class A and B product while signing longer term leases to lock in savings.

The vacancy rate for class C office space is currently 18.2% as a result of this trend and sits an astonishing 11.9 percentage points higher than the 2007 rate of 6.3% and will likely remain high until we begin to see more rent appreciation in the Class A/B market. Overall leasing was strong in Ontario, Riverside and Rancho Cucamonga while asking rates remain far below average in Norco and Redlands.

2015 will see the Inland Empire office market continue to grow especially as the area labor market continues to improve. November saw Riverside-San Bernardino add 7800 jobs (due in part to seasonality) but the unemployment rate should dip below 8.0% as jobs continue to return. If your company will be looking for new space in 2015, contact our agents today at (909) 509-4244 and let us know your requirements.

Photo credit: Greg Wass