GlobeSt.com Exclusive: Office Stabilization and Growth Expected For Riverside
Stabilization and Groth Expected for Riverside
By Natalie Dolce | Inland Empire
RIVERSIDE, CA-GlobeSt.com recently got a sneak peak at Lee & Associates' Riverside year-end report for the office market here. The Report, prepared by Caroline Payan, director of marketing and research of Lee's Riverside office, projects that office market stabilization and growth, which underscored 2013, is expected to continue for 2014.
“This report is encouraging for property owners as the region continues to see decreasing office vacancy levels across all the markets and product types,” says Tom Pierik, senior vice president of Lee & Associates Riverside. “In addition, the Inland Southern California office market recorded its fourth consecutive year of positive net absorption and we expect this trend to continue.”
Net absorption in the region totaled over 750,000 square feet, representing an approximate 140,000-square-foot increase over 2012 levels. Vacancy rates dipped region wide to 18.5%, says the report. Absorption continues to be driven by large transactions and the availability of large blocks of contiguous space is rapidly shrinking.
The report, which is based on Lee’s transaction activity for 2013, also showed that property values are increasing and, with the recent sale of Market Street Corporate Center and Riverside Gateway to Alliance Commercial Partners out of Denver, these values are quickly approaching the range of $200 per square foot.
Other notable transactions in the marketplace during the second half of 2013 include the sale of Two Vanderbilt Way to IEHP and the sale of Park Plaza in Redlands to Silagi Development. “There continues to be strong interest by both institutional and regional capital looking to acquire well located office projects with the potential for rental growth,” says the firm.