Riverside-San Bernardino Office Market Report

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.