April 15, 2016
Vacancy rates for Inland Empire office space dropped to 14% (the lowest since 1Q 2008), while net absorption and lease rates increased during the first quarter of 2016, according to CBRE’s MarketView Report.
The main driver of the office market’s steady incline is population growth due to employment opportunities. The CBRE report said that steady employment growth since 2010 has been driving demand for insurance, medical and government services. Additionally, new infrastructure projects are leading transportation companies to larger blocks of Inland Empire space.
Even better news for the formerly beleaguered market is that metrics show a continuation of demand growth for office space. This will likely lead to added supply and upward pressure on rent rates, the report noted.