Inland Empire Medical Outpatient Figures Q4 2025

In Q4 2025, the Inland Empire medical office market continued to outperform the broader IE general office market as the vacancy rate decreased, asking lease rates edge higher, and investment activity surged. Employment in healthcare remained a key driver of demand, with 3,300 jobs added this quarter, and 14,400 added year-to-date. The average asking lease rate rose by $0.05 per sq. ft. per month to $1.87 FSG in Q4 2025, largely because older, lower-priced building exited the market, lifting the overall average rent. Both vacancy and availability decreased by 40 bps quarter-over-quarter, ending Q4 2025 at 5.2% and 5.9%, respectively. Total net absorption improved significantly, shifting from negative 10,150 sq. ft. in Q3 2025 to 44,900 sq. ft. of positive absorption in Q4 2025, supported by fewer tenant move outs and steady leasing activity. Notably, investment activity surged this quarter, rising to $29 million compared to $17 million in Q3 2025. The increase largely due to a $17 million sale of Medical Professional Plaza in Chino Hills. With strong healthcare demand and elevated development interest, the region is well positioned for continued growth in 2026.