Also included in the report is the firm’s annual National Office Index (NOI), a snapshot analysis that ranks 43 office markets based on a series of 12-month forward-looking supply and demand indicators. Riverside-San Bernardino holds steady this year at No. 8. (San Bernardino skyline in top photo; Riverside skyline in photo at right below)
“Competitive cap rates and a favorable extended outlook will attract buyers to the Inland Empire in 2008,” says Douglas McCauley, regional manager of Marcus & Millichap’s Ontario office.
· Office completions will total 1.5 million square feet this year.
· Vacancy is projected to end the year at 15.1 percent.
· The delivery of more expensive space is projected to support asking rent growth of 3.8 percent to $23.48 per square foot, while effective rents are forecast to climb 2.9 percent to $20.12 per square foot.
· Potential buyers may want to consider locations in the Palm Springs/Palm Desert submarket.
In the 2008 NOI, Seattle moved up three places to secure the No. 1 spot, surpassing last year’s leader New York City, which slipped to No. 2. Boston moved up two spots to No. 3, while San Francisco jumped 12 places to the No. 4 position. Los Angeles slipped two spots, coming in at No. 5.
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