The Inland Empire office market in Q3 2025 shows a slight decline in vacancy and rental rates, while construction activity and sales pricing continue to trend downward. Net absorption remains positive, though new deliveries have slowed significantly. Explore our full Inland Empire office market report for detailed insights into leasing, investment, and development trends.
3Q 2025 Inland Empire Office Market: Key Data Points
- Vacancy Rate Declines: Office vacancy dropped to 5.2%, down 70 basis points year-over-year.
- Asking Rents Dip Slightly: Average asking rent fell to $2.01/SF, a 1.95% decrease from Q3 2024.
- Construction Pipeline Contracts: Space under construction declined to 177,335 SF, down 14.8% year-over-year.
- Sales Prices Drop Sharply: Average sales price per square foot fell to $75.01, a 48.4% decrease year-over-year.
- Cap Rates Compress: Average cap rate decreased to 7.9%, down 160 basis points from the prior year.
- New Deliveries Slow: YTD construction deliveries totaled 27,000 SF, down 55% year-over-year.
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