Inland Empire Office Market Report

The following reflects Inland Empire office market conditions as of 2Q 2026.

The Inland Empire office market in Q2 2026 remained fundamentally healthy, supported by low vacancy, rising rental rates, and increasing property values. While net absorption turned slightly negative and no new office projects delivered during the quarter, limited construction activity and stable tenant demand continue to support market fundamentals. Explore our full Inland Empire office market report for detailed analysis, leasing trends, and investment activity.

Frequently Asked Questions

What is the office vacancy rate in Inland Empire in 2Q 2026?

The Inland Empire office vacancy rate was 5.0% in 2Q 2026, according to Kidder Mathews research. That’s up slightly from 4.9% in the first quarter of 2026 but down from 5.1% a year earlier, indicating vacancy has held in a narrow, historically low range.

What are average office asking rents in Inland Empire in 2Q 2026?

Average asking office rents in Inland Empire reached $2.12 per square foot per month in 2Q 2026 (Data source: CoStar). That’s up from $2.07 in the prior quarter and up 4.95% year-over-year from $2.02, reflecting steady rent growth as vacancy has stayed low.

What were the largest office lease transactions in Inland Empire in 2Q 2026?

The largest office lease signed in Inland Empire in 2Q 2026 was at One Carnegie Plaza in Inland Empire East, a 18,061-square-foot deal completed in May 2026 with landlord Topline, according to Kidder Mathews research. Other significant leases during the quarter included Corona Office Spectrum (16,956 SF) and Corona Pointe Office Park (11,080 SF), both in Inland Empire East and both signed with landlord Rexco Development.

What was net absorption for Inland Empire office space in 2Q 2026?

Net absorption for Inland Empire office space was -23,605 SF in 2Q 2026, meaning slightly more space was vacated than leased up during the quarter (Data source: CoStar). Year-to-date 2026 net absorption stands at -15,549 SF, a sharp reversal from the 607,463 SF of positive net absorption recorded through the same period in 2025.

How much office space is under construction in Inland Empire?

Inland Empire had 197,594 SF of office space under construction as of 2Q 2026, down 11.15% from 222,386 SF a year earlier, according to Kidder Mathews research. Notable projects underway include the 67,497-square-foot RUHS Wellness Village in Inland Empire East (delivering July 2026) and the 42,640-square-foot 4440 Brockton Ave, also in Inland Empire East (delivering December 2026).

Were there any new office construction deliveries in Inland Empire in 2026?

No new office space delivered in Inland Empire during 2Q 2026 or year-to-date 2026, a 100% decrease from the 65,080 SF delivered through the same period in 2025 (Data source: CoStar). This reflects a limited near-term supply pipeline even as several projects remain under construction for delivery later in 2026.

What was the largest office sale transaction in Inland Empire in 2Q 2026?

The largest office sale in Inland Empire in 2Q 2026 was One El Paseo Plaza, a debt multi-property sale in Inland Empire East totaling 86,835 SF that traded for $25,750,000, or $296.54 per square foot, according to Kidder Mathews research. The buyer was Bucksbaum Properties, LLC and the seller was Ocean Properties Dev. Corp.

How have Inland Empire office sale prices and cap rates changed?

Average office sale prices in Inland Empire climbed to $195.64 per square foot in 2Q 2026, up 7.02% from $182.81 a year earlier, according to Kidder Mathews research. Average cap rates were reported at 7.3% in 2Q 2026 compared with 7.9% in 2Q 2025, consistent with the compression that typically accompanies rising sale prices.

What is driving office leasing and sales activity in Inland Empire submarkets?

Inland Empire East accounted for the majority of significant office leasing and sales activity in 2Q 2026, including the quarter’s largest lease (One Carnegie Plaza) and largest sale (One El Paseo Plaza), according to Kidder Mathews research. Inland Empire West also saw notable activity, including the Lakeview Center II multi-property sale (106,345 SF, $24,675,000).

What is the outlook for the Inland Empire office market?

The Inland Empire office market remains fundamentally healthy heading into the second half of 2026, supported by low vacancy, rising rental rates, and increasing property values, according to Kidder Mathews research. Limited new construction and a shrinking development pipeline are expected to continue supporting market fundamentals even as net absorption has turned slightly negative.

Last updated: 2Q 2026. Data source: CoStar. Compiled by the Kidder Mathews Research Group.

2Q 2026 Inland Empire Office Market: Key Data Points

Explore our full Inland Empire office market review for deeper insights into leasing trends, sale activity, and submarket performance.

• Vacancy Rate Remains Low: The Inland Empire office vacancy rate measured just 5.0% in Q2 2026, improving slightly from 5.1% one year ago.
• Asking Rents Continue to Rise: Average asking rents reached $2.12 PSF per month, increasing 5.0% year-over-year as occupier demand supports rent growth.
• Construction Pipeline Shrinks: Office space under construction totaled 197,594 SF, down 11.2% from the previous year, reflecting a limited future supply pipeline.
• Office Property Values Increase: Average office sale prices climbed to $195.64 PSF, a 7.0% increase year-over-year, signaling continued investor interest in the market.
• No New Deliveries in 2026: The Inland Empire recorded no new office construction deliveries year-to-date, helping maintain a balanced supply environment.
• Cap Rates Compress Year-Over-Year: Average office cap rates declined from 7.9% to 7.3%, indicating stronger pricing and improved investment fundamentals.

Market Breakdown

Significant Sale Transactions 2Q 2026

Significant Lease Transactions 2Q 2026

Significant Under Construction