Saturday , June 22 2024

Inland office market still struggles

COVID-19 continued to take a bite out of the Inland Empire office market during the fourth quarter.

The two-county region recorded negative absorption of 64,148 square feet and a vacancy rate of 10.1 percent, according to CBRE.

Inland Empire East accounted for most of the occupancy loss throughout the year with negative net absorption in Corona (-66,875 square feet), Redlands (- 37,184 square feet), and Riverside (-34,791 square feet).

All numbers were compared to the third quarter.

Lease rates held steady at $2 per square foot. Instead of adjusting those rates to account for the drop in demand, most landlords are offering incentives like tenant-improvement packages, short-term renewals and free months, the report noted.

The average asking rate in the Inland Empire East declined 6.3 percent year-over-year. On the west end, the decline was 3.7 percent during that time.

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