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Market Report
Riverside-San Bernardino Office Market Report
2025 Investment Forecast
The Lowest Vacancy in the Nation Draws Investment,
but No Sign of Increased Construction
The office market continues to tighten in Inland Empire. In addition to being a mecca for logistics and distribution companies, the metro also has a growing concentration of advanced manufacturing companies. These industries, alongside expanding medical facilities and government services, drive demand for flex space and traditional offices. The Inland Empire has had sub-10 percent office vacancy since 2018 and is expected to see further tightening in 2025. Net absorption has doubled or tripled completions since 2010 with few exceptions; however, the construction pipeline has yet to accelerate even as vacancy approaches 8 percent, creating a leasing environment likely to favor property owners through 2025. Completions are expected to raise inventory by just 0.1 percent this year, with most already pre-leased as of early 2025, potentially supporting properties with upcoming renewals. Expanding businesses in the region stand to benefit from robust net in-migration, which hit an 18-year high in 2024. This should help encourage the first net increase in office-using employment since 2021.