Inland office vacancy keeps shrinking
Office vacancy in the Inland Empire fell to 8.5 percent during the first quarter, its lowest percentage since the first quarter of 2006, according to data released Wednesday.
The east end led in absorption gains, while the west side – Ontario, Rancho Cucamonga, Fontana, Mira Loma – sustained a seven percent vacancy rate, Newmark Knight Frank Ontario reported in it first quarter report on the local office market.
Lease rates averaged $2.15 per square foot for Class A space and $1.70 for Class B, for a market wide average $1.80.
Government agencies, banks, real estate firms and insurance companies drove much of the office demand during the first quarter. No speculative office development happened during the first quarter of 2019, and the report doesn’t speculate on when that might happen.
“Consistent absorption gains and the absence of new speculative deliveries have created a tight office market in recent years,” the report states. “Vacancy has remained below 10 percent for six consecutive quarters, while Class A space is dwindling.”