IE Business Daily Business news for the Inland Empire.
The Inland Empire office market has gotten off to a decent start in 2024, thanks to short-term leases that have helped keep vacancy rates low.
The region’s 8.8 percent vacancy rate during the first quarter was essentially unchanged from the third quarter of 2023, mostly because many large tenants signed lease renewals that allowed them to determine their long-term space needs, according to CBRE.
That kept the vacancy rate in Riverside and San Bernardino counties – which dropped only .03 percent between the quarters – lower than other nearby markets.
Lease rates in the Inland region were also static – up only three cents between the quarters – while net absorption totaled nearly 11,000 square feet. The west end lost 10,890 square feet of office space during the first quarter, but that was offset by the 21,809 square feet absorbed on the east end.
A little more than 44,000 square feet of office space was under construction when the first quarter ended, about the same as the end of 2023.
The $26.8 million sale of Vanderbilt Plaza at 451 E. Vanderbilt Way in San Bernardino was the largest investment sale of the first quarter. San Bernardino County purchased the building from Tri-City Property LLC in Long Beach.
