2017 Q4 Greater Los Angeles Inland Empire Office Knowledge Report

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2017 Q4 Inland Empire Office Market Snapshot

In the fourth quarter of 2017, total vacancy rate for the Inland Empire office market decreased 50 basis points from 13.9% last quarter to 13.4%. The decrease in vacancy pull stems from the San Bernardino submarket, which recorded a decrease of 240 basis points. The fourth quarter closed with positive absorption recording at 99,000 square feet (SF). Leasing activity grew by 43% compared to last quarter, recording 412,800 SF for the quarter.

Key Takeaways:

  • The weighted average asking rental rate increased during fourth quarter to $1.78 per square foot (PSF), full service gross (FSG). As a historical perspective, one year ago the asking rental rate
    recorded at $1.72 PSF FSG.

  • Four of eight submarkets witnessed positive net absorption with San Bernardino recording the highest at 119,400 SF and the Rancho Cucamonga submarket recording the lowest at -57,400
    SF.

  • Among building classes, Class C office led net absorption 69,100 SF for the quarter, while Class A had the lowest quarterly absorption at -32,100 SF.

Outlook:

The unemployment rate for the Inland Empire was 4.8% as of November 2017, adding 42,800 non-farm jobs to the region over the past year.

Construction registered the greatest year-over-year gain, adding 14,700 jobs. Specialty trade contractors accounted for 84% of the job growth in this sector. Another bright spot was leisure and hospitality, which has grown by 8,000 jobs over the past year.


Greater Los Angeles Inland Empire Office Knowledge Report

2017 Q4 Greater Los Angeles Inland Empire Office Knowledge Report

Download Report