The Inland Empire office market had a solid second quarter, with 14,584 square feet of net absorption and nearly 39,000 square feet of construction recorded during that time, according to CBRE.
Office vacancy decreased 30 base points to 9.7 percent, the third consecutive quarter-over-quarter vacancy drop for the office market in Riverside and San Bernardino counties, CBRE reported.
That positive trend can be attributed mostly to leasing by government and legal tenants, along with an increase in larger transactions. The Inland office market’s average lease rate during the second quarter was $1.98 per square foot, a 2.6 percent increase from the second quarter of 2021.
One of the bigger developments in the second quartern was Kaiser Permanente’s decision not renew its lease of 41,695 square feet of office space at 10740 Fourth St. in Rancho Cucamonga, which returned all of that space to the market.
Also, Mercury Insurance listed for lease their 127,000 square feet of space at 11000 Eucalyptus St. in Rancho Cucamonga, according to CBRE.