The Inland Empire office market in Q4 2025 shows vacancy rates continuing to decline while asking rents edge upward. Construction activity remains subdued, with fewer new deliveries and a shrinking pipeline, even as net absorption strengthens. Explore our full Inland Empire office market review for detailed trends and transaction insights.
4Q 2025 Inland Empire Office Market: Key Data Points
- Vacancy Rate Drops: Inland Empire office vacancy decreased to 5.0%, down from 5.9% year-over-year.
- Asking Rents Inch Up: Average asking rent rose slightly to $2.04 per SF, a 0.99% increase year-over-year.
- Construction Pipeline Contracts: Space under construction fell to 197,774 SF, an 18.7% decline from last year.
- New Deliveries Slow: Only 24,000 SF of new office space delivered in Q4, down 39.6% year-over-year.
- Sales Price Softens: Average sales price per SF dropped to $149.74, a 17.9% decrease compared to Q4 2024.
- Cap Rates Rise: Cap rates climbed to 6.9%, up from 6.1% a year ago.
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