ONTARIO, CA— For the Inland Empire office market, above-average construction activity will be the prevailing trend in 2008, according to the 2008 National Office Report by Marcus & Millichap, the nation’s largest real estate investment services firm. Local job creation is projected to exceed the national average again in 2008.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 t
he Inland Empire in 2008,” says Douglas McCauley, regional manager of Marcus & Millichap’s Ontario office.Following are some of the most significant aspects of the Riverside-San Bernardino Office Research Report:
· Employers are forecast to expand payrolls by 20,000 positions this year, 1.5 percent increase.
· 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.
· 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.
For a copy of Marcus & Millichap’s National Office Report and the complete NOI rankings, visit http://www.marcusmillichap.com/.
CONTACT:
Stacey Corso
Public Relations Manager
Marcus & Millichap
2999 Oak Road
Suite 210
Walnut Creek, CA 94597
Office: 925.953.1716
Mobile: 415.672.6460
Fax: 925.953.1710
http://www.marcusmillichap.com/
Stacey Corso
Public Relations Manager
Marcus & Millichap
2999 Oak Road
Suite 210
Walnut Creek, CA 94597
Office: 925.953.1716
Mobile: 415.672.6460
Fax: 925.953.1710
http://www.marcusmillichap.com/
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