IE Business Daily Business news for the Inland Empire.
The Inland Empire office market slowed during the third quarter, as premium space became limited and some tenants held out for more favorable deals.
Nearly 45,000 square feet of office space was absorbed in Riverside and San Bernardino counties during the quarter that ended Sept. 30, a decent number but down significantly from the 267,604 square feet that came online during the second quarter of this year, according CBRE Group Inc.’s latest quarterly report on the Inland office market.
Rancho Cucamonga led all submarkets 21,351 square feet of positive net absorption, according to the report, which was released last week.
Vacancy was 17 percent when the quarter closed, a drop of 10 basis points from the second quarter, the report stated.
The average lease rate at the end of third quarter was $1.78 a square foot, up two cents from the second quarter. That marked the fifth straight month that office lease rates have gone up in the two-county region.
“The gradual uptick in asking lease rates indicates that the market is trending in the right direction as market fundamentals strengthen,” the report stated.
