IE Business Daily Business news for the Inland Empire.
The Inland Empire office market might be showing signs of life.
Net absorption of office space totaled 35,141 square feet during the first three months of this year, meaning the region has added to its net office occupancy in 17 of the last 19 quarters, according to Newmark, Grubb, Knight Frank’s first quarter report on the region’s office market.
During that period, net absorption totaled more than 2.3 million square feet even though only 200,000 square feet of office space was built. That means office space left vacant by the recession in 2008 is finally starting to fill up.
Vacancy during the first quarter was 14.6 percent, down from 15 percent exactly one year earlier. Average lease rates for office space in Riverside and San Bernardino counties during that time was $1.63 a square foot.
Much of the growth in office occupancy happened around Ontario International Airport. The High Desert, Riverside and San Bernardino all posted small amounts of negative absorption, the report stated.
