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Riverside and San Bernardino Counties Have Highest Office Vacancy Rates

A study by a USC group found the counties have the highest vacancy rates in the region but industrial space continues to be in high demand in the area.

Riverside and San Bernardino counties continue to have the highest office vacancy rates in the Southern California region in the wake of the Great Recession, but industrial space in the Inland Empire remains in high demand, according to an annual survey released today.

According to the University of Southern California's Casden Industrial and Office Forecast 2012, inland office buildings cannot fill one-fifth of their space, putting a drag on rents.

The forecast showed that the 21.1 percent market-wide vacancy rate rivals rates in neighboring counties. Orange County, for example, had a 16.6 percent rate.

"A building boom has begun once again in the Inland Empire and could temper the improvements in rents and vacancy rates that otherwise would have occurred," said Tracey Seslen, the study's author. "The magnitude of the changes will also depend on manufacturing output, oil prices, U.S. monetary and fiscal policy, and sovereign risk in Europe."

Between the third quarter of 2011 and the third quarter of this year, the office market experienced a 3.6 percent drop in rents, for an average rent of $1.85 per square foot, according to the forecast.

The decline, however, compared to a 6.3 percent slip from Q3 2010 to Q3 2011. In the industrial market, space isn't widely available. The vacancy rate for warehouses and similar commercial structures fell 1.7 percentage points in the last year to 4.9 percent, according to the study.

That dovetailed with an increase in asking rents for inland-area industrial space, which goes for an average 35 cents per square foot, compared to 33 cents in 2011. Research for the Casden Industrial and Office Forecast was provided by the Torrance-based Hoyt Organization.

Ern Batavia December 06, 2012 at 08:41 PM
Who in their right mind is going to start - or expand - a business now that the idiot voters of this state are now voting tax increases......let alone putting a Socialist back in the White House.
Charles Ferrell December 06, 2012 at 09:51 PM
That is because liberals/progressives don't think things through. They don't look ahead or even consider any kind of big picture. Environmentalists look at life and say "wouldn't it be neat if we had no polution, no automobiles, no fossil fuel emmissions, everybody used public transportation to go everywhere, no animals would be killed or eaten or in any put at risk by evil mankind, everybody would live off the land, there would be no money, just an exchange and barter system, no laws, no rules, except for ones individual communities set up, through majority vote, there would be no religion nor a need for one, no nations, no borders and no need for such things, and all of us in the world could live and love as one." It seems these folks are the ones who elected Democrats to run California, Illinois and New York and political leaders from those three states, mostly, now run the White House, hold a majority in the US Senate and only have the House of Representatives to hold them back from ruining our nation at a faster pace then they are now. In California, our state, there is nobody holding back the Democrats. So why would anyone want to start or grow a business here? No reason at all, as long as there are still some "red" states -- actually most states are "red" states with Republican governors and Republican majorities among state legislatures -- that haven't been overpowered by the powers that be in California, Illinois, New York and Washington D.C.
Ron Moon December 06, 2012 at 11:19 PM
More Mexican Restaurants and "Carnecerias" (Mexican Meat Markets) are the answer!
Diego Rose December 11, 2012 at 07:18 PM
Charles, again I believe you have to look no further than the Haven to see that the biggest problem facing the expansion of business in the US is the overwhelming amount of government intrusion and over regulation, all in the guise of "safety". Both parties are responsible for this. Remember this, It is not left vs. right, it is the state vs. you!

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