Figures

Inland Empire Office Figures Q2 2026

Vacancy increases as tenant consolidation and slower leasing weigh on the Inland Empire Office Market

July 9, 2026 5 Minute Read

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  • Leasing activity declined 32.5%, dropping from 189,553 sq. ft. in Q1 2026 to 128,000 sq. ft. this quarter. Deal size continues to contract, with only two transactions above 20,000 sq. ft. completed year-to-date.
  • Vacancy increased for the second consecutive quarter, rising from 6.0% to 6.6%, as move-outs continue to outpace new leasing activity. Limited quality options and moving costs give tenants little incentive to relocate, with downsizing remaining the primary driver of tenant movement.
  • Net absorption declined for the second consecutive quarter, totaling negative 149,600 sq. ft., as smaller deal sizes and fewer transactions failed to absorb available inventory.
  • Despite the slowdown, asking rates rose from $2.24 FSG in Q1 2026 to $2.28 FSG this quarter, as large landlords continue to push pricing higher.