INLAND EMPIRE – (INT) – Sales of larger office buildings in the Inland Empire took a dive at the close of 2018. The 2-county region fared comparably worse than the larger six California markets, analyzed by Commercial Café.

Considering that commercial real estate in Inland Empire is mostly industrial, wide year-over-year swings in the office sector are not uncommon and can be caused by as little as one office sale, or in this case, a very strong Q2 in the previous year. Though more deals closed in 2018 than in 2017, transactions encompassed 32% office inventory. Dollar volume amassed by office sales in Riverside and San Bernardino counties dropped 43% year-over-year.

Average prices continued to yo-yo and even stayed close to the $200 mark for three consecutive quarters, but finally rested at roughly $185 per square foot, which was 24% below the 2017 average.

Notable deals to close on the Inland Empire office market last year include two Ontario office properties that each commanded $30 million.

Commercial Café analyzed all office transactions to close in the Bay Area, Inland Empire, Los Angeles, Orange County, Sacramento, San Diego, and San Francisco office markets. Only transactions with price tags equal to or larger than $5 million each were considered.

Story Date: March 29, 2019