Saturday , June 22 2024

Inland office market treads water

The Inland Empire office market put up some decent numbers during the last three months of 2020, according to data released this week.

Average lease rates rose to $1.92 per square foot, a two percent increase compared with the fourth quarter of 2019, according to Newmark, the global commercial real estate services and advisory firm.

That’s probably the highest lease rates will go until the market, which has taken a severe hit in the pandemic, returns to normal, the report stated.

Total vacancy dropped to 11.6 percent,  not a good number but still below the office market’s 10-year average of 15.3 percent.

Absorption was down for the third consecutive quarter, with more than 233,000 square feet of losses. For the year, net absorption in the Inland office market was just under negative 410,000 square feet.

One new project was delivered during the fourth quarter, the 147,784-square foot Lake Shore Plaza development in Corona. A 30,521-square-foot office development near Ontario International Airport remains under construction and is expected to be completed next year, according to Newmark.

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