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INLAND EMPIRE OFFICE ABSORPTION UP IN THIRD QUARTER; VACANCIES CONTINUE TO FALL, REPORT REVEALS

 INLAND EMPIRE OFFICE ABSORPTION UP IN THIRD QUARTER;
 VACANCIES CONTINUE TO FALL, REPORT REVEALS
 ONTARIO, Calif., Oct. 29 /PRNewswire/ -- Office leasing picked up in the Inland Empire in the third quarter of 1992, while the vacancy rate continued to fall, according to a report released today by Grubb & Ellis Commercial Real Estate Services.
 "Despite the sluggish economy, we're still seeing tenant expansion as well as new office users entering our market," said Les Copelin, office properties specialist with Grubb & Ellis' Riverside office. "As a result, our vacancy rate continues to decline, unlike many Southern California office markets, which are experiencing negative absorption and rising vacancies."
 The vacancy rate stood at 23 percent in the Riverside/San Bernardino County area as the third quarter ended, unchanged from the previous quarter and down a full percentage point from the 24 percent posted a year ago. In the two-county area, 2.9 million square feet of office space was vacant from an existing base of 12.5 million square feet.
 Net absorption, or the net change in occupied space from one quarter to the next, totaled 137,764 square feet for the third quarter. That was up from the previous quarter's total of 107,879 square feet, as well as the 129,056 square feet recorded during the third quarter of 1991.
 Net absorption for the first nine months of 1992 totaled 465,505 square feet, down from the 616,073 square feet absorbed during the first nine months of 1991.
 Leading the Inland Empire in net absorption for the third quarter was the Ontario/Rancho Cucamonga/Fontana submarket with 106,170 square feet. Year to date, 244,131 square feet of office space has been absorbed in this submarket, which posted a vacancy rate of 27 percent.
 "Rancho Cucamonga and Ontario were clearly the focus of activity during the third quarter," said Copelin. "The vacancy rate in this submarket has dropped two full percentage points over the past year."
 Significant transactions closed in the third quarter in Rancho Cucamonga and Ontario included the following:
 -- Calvary Church leased 12,500 square feet in Rancho Technology
 Center II in Ontario;.
 -- Transamerica leased 7,500 square feet in Haven Commerce
 Center in Rancho Cucamonga; and
 -- Inland Co. Legal Services leased 7,900 square feet in Civic
 Center Plaza I in Rancho Cucamonga.
 The Riverside/Corona/Moreno Valley submarket, with a vacancy rate of 22 percent, posted 6,712 square feet of net absorption in the third quarter and has absorbed 151,278 square feet of office space year to date. Among the quarter's significant transactions was 8,000 square feet leased in Park Atlanta North in Riverside by Riverside Environmental Health.
 The San Bernardino/Redlands/Colton submarket recorded 20,926 square feet of absorption and a vacancy rate of 21 percent in the third quarter. The largest transaction in the quarter was 11,500 square feet leased by the California State Department of Transportation in San Bernardino. Year-to-date, this submarket has absorbed 78,106 square feet of office space.
 Chino/Montclair/Upland posted a vacancy rate of 21 percent and 679 square feet of negative absorption in the third quarter. Year to date, this submarket has recorded 1,280 square feet of negative absorption.
 Victorville, the Inland Empire's smallest office market, had 4,635 square feet of positive absorption in the third quarter and posted a vacancy rate of 32 percent. Through the first nine months of the year, this submarket has recorded 6,730 square feet of negative absorption.
 Activity was healthy in the Victorville area in the third quarter, according to Grubb & Ellis' Victorville specialists, Ted Bradach and Veda Saltamachio. Bradach and Saltamachio handled the largest lease transaction completed in Victorville in the third quarter as well as the largest sale.
 In Victorville's largest lease transaction, Social Security leased 7,600 square feet of office space in Sunset Park, while in the largest sale, Inland Eye Institute, purchased a 26,000-square-foot office building.
 The amount of office space under construction in the Inland Empire in the third quarter totaled 68,937 square feet, down from 108,947 square feet a year ago. Submarkets with office space under construction include Victorville, with 32,497 square feet and Riverside/Corona/Moreno Valley, with 36,440 square feet.
 -0- 10/29/92
 /CONTACT: Sharon Abar, public relations director of Grubb & Ellis, 714-937-0881/
 (GBE) CO: Grubb & Ellis Commercial Real Estate Services ST: California IN: SU:


BP-EH -- LA013 -- 6603 10/29/92 13:01 EST
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Publication:PR Newswire
Date:Oct 29, 1992
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