Partnership. Performance. avisonyoung.com Market Overview First Quarter 2017 / Office Market Report Inland Empire Market Facts 5.3% Inland Empire Unemployment Rate 284,985 SF Positive Net Absorption Current Quarter 11.0% Total Vacancy Rate Down From 11.8% In Q4 2016 $1.85 PSF Asking Rental Rate Weighted Average Transaction Volume by Property Sector 4% 36% 16% 31% 13% Office Industrial Retail Multi‐Family Land 11.00% 14.00% 17.00% 20.00% $1.60 $1.70 $1.80 $1.90 2012Q1 2013Q1 2014Q1 2015Q1 2016Q1 2017Q1 0 200,000 400,000 600,000 2012Q1 2013Q1 2014Q1 2015Q1 2016Q1 2017Q1 2012Q1 2013Q1 2014Q1 2015Q1 2016Q1 2017Q1 Asking Rent Vacancy Rates Net Absorption Demand for office space in the Inland Empire remains steady at the start of the New Year of 2017. Vacancy has decreased year-over-year post-recession, while rental rates have gradually been bolstered by increasing demand in the same time frame. The Inland Empire’s unemployment rate, as of the first quarter of the year, dropped to 5.3%, down from 5.9% one year earlier. Within the market, unemployment was 5.5% in Riverside County and 5.2% in San Bernardino County. The counties of Riverside and San Bernardino, which make up the Inland Empire market, are experiencing strong economic fundamentals, and rapid growth in population and quality inventory. Office inventory will likely grow further out of a response to the market’s massive industrial inventory, and the multifamily inventory boom and retail expansion that has followed in natural progression. Construction deliveries of office inventory are far off from pre-recession levels, and the market has extensive room to grow. As of the first quarter of 2017, vacancy in the Inland Empire’s office market decreased to 11.0%, down from the previous quarter at 11.8%, and markedly down from the same time in the previous year at 12.4%. On a year-over-year basis, vacancy has decreased significantly since recession highs of 20%, when construction activity had reached record levels. Developers are proceeding with cautious optimism, with a modest up-tick in construction activity over the past year. Rental rates in the market have been responding to the slow contraction in availability with a matched pacing. First quarter rents averaged $1.85 psf FSG, down from the previous quarter at $1.90 psf FSG, yet up from the same time in the previous year at $1.83 psf FSG. Total net absorption reached positive 284,985 sf for the quarter, and positive 661,779 sf for the most recent 12 month period.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Demand for office space in the Inland Empire remains steady at the start of the New Year of 2017. Vacancy has decreased year-over-year post-recession, while rental rates have gradually been bolstered by increasing demand in the same time frame. The Inland Empire’s unemployment rate, as of the first quarter of the year, dropped to 5.3%, down from 5.9% one year earlier. Within the market, unemployment was 5.5% in Riverside County and 5.2% in San Bernardino County.
The counties of Riverside and San Bernardino, which make up the Inland Empire market, are experiencing strong economic fundamentals, and rapid growth in population and quality inventory. Office inventory will likely grow further out of a response to the market’s massive industrial inventory, and the multifamily inventory boom and retail expansion that has followed in natural progression. Construction deliveries of office inventory are far off from pre-recession levels, and the market has extensive room to grow.
As of the first quarter of 2017, vacancy in the Inland Empire’s office market decreased to 11.0%, down from the previous quarter at 11.8%, and markedly down from the same time in the previous year at 12.4%. On a year-over-year basis, vacancy has decreased significantly since recession highs of 20%, when construction activity had reached record levels. Developers are proceeding with cautious optimism, with a modest up-tick in construction activity over the past year. Rental rates in the market have been responding to the slow contraction in availability with a matched pacing. First quarter rents averaged $1.85 psf FSG, down from the previous quarter at $1.90 psf FSG, yet up from the same time in the previous year at $1.83 psf FSG. Total net absorption reached positive 284,985 sf for the quarter, and positive 661,779 sf for the most recent 12 month period.
Amber Jagers
Line
Amber Jagers
Line
Partnership. Performance. avisonyoung.com
First Quarter 2017 / Office Market Report Inland Empire
South Riverside North Riverside Coachella ValleyWest San Bernardino East San Bernardino High Desert San Bernardino
Rental Rate by Submarket
South Riverside North Riverside Coachella ValleyWest San Bernardino East San Bernardino High Desert San Bernardino
Vacancy by Submarket
SUBMARKET SUBMARKET DIVISIONS CITIES WITHIN SUBMARKETTemecula / Murrieta / Lake Elsinore Temecula, Murrieta, Lake Elsinore, Wildomar, WinchesterPerris / Menifee Perris, Menifee, Nuevo, Romoland, Sun City
Hemet Hemet, San Jacinto
Corona Corona, NorcoRiverside City Eastvale, Jurupa Valley, Mira Loma, Riverside City‐North
Moreno Valley Moreno Valley, Riverside City‐SouthBeaumont / Banning Beaumont, Banning, Cabazon, Calimesa
Palm Desert / Palm Springs Palm Desert, Palm Springs, North Palm Springs, Desert Hot Springs, Bermuda Dunes, Cathedral City, Thousand Palms, Rancho Mirage, Indian Wells, La QuintaChino Chino, Chino Hills
Airport Area Ontario, Rancho Cucamonga, Upland, Etiwanda, MontclairSan Bernardino City / Redlands San Bernardino City, Redlands, Highland, Mentone, Yucaipa
Fontana / Rialto Fontana, Rialto, Colton, Grand Terrace, Loma Linda, Bloomington
Victorville / Hesperia / Adelanto Victorville, Hesperia, Adelanto, Apple Valley, Oak Hills, Siver LakesBarstow Barstow
Regional Managing Director: Chris Cooper - Corporate 555 S Flower St, Ste 3200 Los Angeles, CA [email protected]
Contact Information - Southern California, United States
213.935.7430 323.851.6666 310.899.1800
Los Angeles - Downtown 555 S Flower St, Ste 3200Los Angeles, CA 90071 Primary Contact: Ted [email protected]
Los Angeles - North6711 Forest Lawn DrLos Angeles, CA 90068 Primary Contact: Mark Evanoff [email protected]
Los Angeles - West10940 Wilshire Blvd, Ste 2100 Los Angeles, CA 90024 Primary Contact: Jonathan Larsen [email protected]
Los Angeles - Santa Monica 301 Arizona Ave, Ste 303 Santa Monica, CA 90401 Primary Contact: Randy [email protected]
San Diego - La Jolla4225 Executive Sq, Ste 600 La Jolla, CA 92037Primary Contact: Jerry Keeney [email protected]
858.201.7077
Orange County - Irvine 2030 Main Street, Ste 150 Irvine, CA 92614Primary Contact: Stan Yoshihara [email protected]
213.471.1069
A Growing, Multinational Presence
Avison Young is the world’s fastest-growing commercial real estate services firm. Headquartered in Toronto, Canada, Avison Young is a collaborative, global firm owned and operated by its principals. Founded in 1978, the company comprises 2,400 real estate professionals in 79 offices, providing value-added, client-centric investment sales, leasing, advisory, management, financing and mortgage placement services to owners and occupiers of office, retail, industrial and multi-family properties.
Avison Young at a Glance
GREENVILLE
ATLANTA
EDMONTON
CALGARY
MINNEAPOLISCHICAGO (2)
DETROIT
COLUMBUS
CHARLOTTE
BOSTONHALIFAXMONCTONOTTAWA
MONTREAL
QUEBEC CITYCLEVELAND
PITTSBURGH
LAS VEGAS
RENO
INDIANAPOLIS
SACRAMENTO
LOS ANGELES (4)ORANGE COUNTYSAN DIEGO
TORONTO (2)TORONTO NORTHTORONTO WESTWATERLOO REGION
RALEIGH-DURHAM (2)
PHILADELPHIANEW JERSEY
SUBURBAN MARYLANDWASHINGTON, DCTYSONS CORNER
FAIRFIELD/WESTCHESTER LONG ISLANDNEW YORK CITY
SAN FRANCISCOOAKLANDSAN MATEO
DENVER
WINNIPEG
REGINA
CHARLESTON
HAMBURG
LONDON (2)
THAMES VALLEY
FRANKFURT
MUNICH
DUESSELDORF
BERLIN
NASHVILLE
KNOXVILLE
ST. LOUIS
MEMPHIS
HARTFORD
MEXICO CITY
COVENTRY
TAMPA
ORLANDO
DALLASHOUSTON
AUSTIN
SAN ANTONIO
PHOENIX
VANCOUVER
LETHBRIDGE
WEST PALM BEACH BOCA RATON
JACKSONVILLE
FORT LAUDERDALEMIAMI
Founded: 1978 Total Real Estate Professionals: 2,400
Offices: 79Brokerage Professionals: 900+
Property Under Management: 100 million sf
858.201.7072
Report Prepared By:Amber Jagers - Research Manager 4225 Executive Sq, Ste 600La Jolla, CA [email protected]
858.935.4191
Inland Empire - Temecula 4225 Executive Sq, Ste 600 La Jolla, CA 92037Primary Contact: Stan Nowak [email protected]