The Inland Empire office market in 1Q 2026 reflects improving fundamentals, highlighted by declining vacancy, modest rent growth, and reduced construction activity. While sales pricing has adjusted year-over-year, tenant demand remains steady, supported by limited new supply and positive absorption. Review our full Inland Empire office market report for comprehensive insights, trends, transactions, and forecasts shaping the region.
1Q 2026 Inland Empire Office Market: Key Data Points
- Vacancy Rate Declines Year-over-Year: Office vacancy fell to 4.9%, down from 5.4% in 1Q 2025, indicating tightening market conditions.
- Average Asking Rents Trend Upward: Average asking rents increased to $2.07/SF/month, a 1.5% year-over-year gain, signaling stable landlord pricing power.
- Construction Pipeline Contracts: Office space under construction dropped to 154,954 SF, a 34% year-over-year decline, limiting future supply additions.
- Sales Pricing Adjusts: Average sales price declined to $110/SF, reflecting a 32% year-over-year decrease amid shifting capital market conditions.
- Positive Net Absorption Returns: Net absorption totaled 16,081 SF, confirming tenant demand despite muted leasing velocity.
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