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Market Report

Riverside-San Bernardino Office Market Report

1Q 2026

Nation’s Lowest Vacancy Rate Benefits From Long-Term
Tailwinds as Short-Term Demand Softens

Job market supporting hiring outside logistics sector. The Inland Empire’s largest submarkets entered 2026 with varying vacancy trends. In the Palm Springs-Coachella Valley, home to the metro’s largest rental stock, vacancy rose above 6 percent last year. An annual decline of roughly 60 percent in deliveries will relieve some pressure, but near-term demand forces are mixed. Resilient tourism spending should help hiring in a key local industry. However, national logistics challenges weigh on regional employers. Even so, the opening of the Desert Hot Springs Amazon Warehouse should boost local Class C rental demand. In Riverside proper, vacancy temporarily rose 50 basis points last year due to a spike in deliveries. However, marginal completions are projected there this year. Similarly, the city of San Bernardino continues to record limited inventory growth, with vacancy likely to hold in the 4 percent range this year.
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