Office market posts another strong quarter

The Inland Empire office market continued to improve during the second quarter, as net absorption rose while the region’s vacancy rate declined.

The two-county region added 97,882 square feet of office space in April, May and June, according to data released Tuesday by CBRE Group Inc. Ontario.

Corona absorbed the most space, 71,091 square feet.

All of that positive net absorption happened in buildings that have been on the market for awhile. Once again, a quarter passed without any office buildings being constructed in Riverside or San Bernardino counties.

However, the Inland office market has now recorded positive net absorption – meaning more space was added than was taken away  – in 21 of the past 22 quarters, CBRE reported.

The region’s vacancy rate fell to 11.7 percent in the second quarter, down from 12.2 percent during the first three months of the year. The average lease rate, $1.90 per square foot, was essentially unchanged from the first quarter: it represented a drop of one percent.

There was approximately 24.6 million square feet of office space in the Inland region during the second quarter

“Fundamentals continued to reinforce the “slow but steady” dynamic that has so aptly described the Inland Empire office market during this recovery and expansion,” the report stated. “Market fundamentals in the region have steadily improved since the recession and those gradual improvements seem almost certain to continue in the near term.”