The Inland Empire office market performed well during the third quarter, with lease rates rising 5.2 percent year-over-year.
Asking lease rates for Class A office space in the two-county region was $1.89 per square foot, the highest rate since 2007 before the Great Recession, according to Newmark, the commercial real estate firm.
Vacancy was 11.3 percent, a modest drop from the second quarter of 2021 and below the 10-year average of 13.6 percent.
Net absorption was 18,518 square feet, which brought the year-to-date absorption total to just under 50,000 square feet. Ontario International Airport and Riverside posted the largest absorption gains of any submarkets – 56,600 and 56,149 square feet, respectively – but those gains were offset by the 101,948 square feet lost in San Bernardino.
Besides Ontario, the airport submarket includes Fontana, Rancho Cucamonga, and Mira Loma.
Total office inventory in Riverside and San Bernardino counties was 28.4 million square feet, virtually unchanged from one year earlier.
Also, there were three office projects totaling 77,721 square feet under construction at the end of the third quarter, each of which is expected to be completed by the end of the year, according to Newmark.