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Market Correction Makes Slow Headway;
Total Vacancy Rate Rises To 23% And Asking Rents Fall To $2.02
The massive office building boom in the Inland Empire is starting to run out of steam. Office completions totaled only 306,300 SF this quarter and only 454,700 SF remains under construction.
The dramatic rise in the vacancy rate over the past three years has been mainly due to construction completions. As the few remaining buildings that are still under construction are finally brought to market, it is expected that the vacancy rate should begin to stabilize.
Rising vacancy rates have put downward pressure on rents. As such, the average asking rental rate for the region has continued to decline for the fourth straight quarter and now stands at $2.02 PSF Full Service Gross (FSG). This is down from $2.04 last quarter and $2.11 one year ago.
Contact Thomas Galvin at 909.937.6309 for more information.
  OFFIE09Q1.pdf
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