IE Business Daily Business news for the Inland Empire.
The Inland Empire office market held its ground during the third quarter of 2025.
Vacancy was 5.5 percent, same as the second quarter despite a 27 percent slowdown in leasing caused by a decline in new listings of space, according to CBRE.
That helped keep conditions tight and allowed landlords to maintain asking lease rates.
Leased space during the third quarter totaled 215,800 square feet, down from 297,000 square feet quarter-over-quarter.
Net absorption was negative 12,500 square feet, down from negative 36,100 square feet in the second quarter, a modest improvement caused mostly by a decline in vacated space. Class A office buildings experienced positive absorption for the third consecutive quarter, with 23,700 square feet newly occupied.
Average lease rates were essentially unchanged, from a revised $2.18 per square foot in the second quarter to $2.17 per square foot during the third quarter. No office projects broke ground during the third quarter, according to CBRE.
