Class A vacancy stands at 7%, according to Grubb & Ellisresearch, and asking lease rates are up 6.5% to $21.48 per sf.

"The Inland Empire has outgrown its identity as an emergingmarket and has secured its place as an established office market,"Ewart declares. "The two-county area has become attractive to agrowing number of class A tenants, as well as a popular destinationfor both national and regional investors' dollars."

Ewart points to the results seen by Riverside-based Magnon Co.,which shed four office properties in its hometown for $11 million,or $147 per sf. Three separate local investors grabbed the assets,allowing Magnon Co. to shift into new developments. The marketalready is seeing 547,862 sf of new construction, nearly triple theamount from a year ago. About 40% of that is the two-buildingoffice portion of Corona Pointe, a mixed-use project that includesretail space and a Marriott hotel.

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