RIVERSIDE, CA—GlobeSt.com received an advanced copy of the Lee & Associates‘ Riverside office report showing the office market continuing its slow and steady stabilization with projected growth on the horizon. According to the firm, the region saw both positive absorption and decreased vacancy.
“This is a very promising report and shows that the Inland Southern California office market continues to grow marking its fourth consecutive year of positive net absorption in 2013, with 2014 expected to do the same,” says David Illsley of Lee & Associates Riverside.
With net absorption in the region totaling almost 262,000 square feet year-to-date, vacancy rates dipped region-wide to 17.3% as the housing market continues to recover and new residential development commences. The report, which was prepared by Caroline Payan, director of marketing and research of Lee’s Riverside office, also shows that absorption will continue to be driven by an increase in employment and the lack of new construction in the marketplace.
Large blocks of contiguous space continues to be scarce with only 26 properties in the market offering contiguous space over 20,000 square feet. This trend is expected to continue throughout the remainder of 2014. The report also showed:
• The Ontario and Riverside markets posted positive absorption through mid-year 2014.
• Class A and B properties continue to decline in vacancy.
• Class B Properties continue to show significant strength, with over 160,000 square feet absorbed year-to- date.
• Vacancy rates remain steady in class C properties.
• Government and healthcare users remain largely active, absorbing blocks of space over 30,000 SF.
• Velocity in the submarkets neighboring Orange and Los Angeles Counties is starting to increase, indicating that the gradual return of the job and housing markets in those areas is expanding to the Inland Empire.