Despite popular assumptions, the suburban office market is performing quite well, according to a report by CBRE Group, Inc., which discovered that vacancy rates are near pre-recession lows. Among the 58 suburban markets CBRE tracked, 50 recorded positive absorption in 2016.
Many markets that lagged during the current expansion, such as the Inland Empire, posted year-over-year vacancy rate decreases of 200 bps or more in Q4 2016.
“The recovery of the Inland Empire office market, although slow and steady, has outpaced the recovery of both downtown Los Angeles and Orange County,” said CBRE’s John Bibeau. “Hitting a high of almost 24% in 2010, our vacancy rate has since been cut in half.”
Bibeau notes that the Inland Empire’s suburban office market may not have the prestige of CBDs, but “its solid market fundamentals have attracted significant demand from both institutional and private investors.”
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