Office and Industrial Space Leasing ‘Firm’ : Riverside, San Bernardino Counties Expected to Have Especially Strong Demand This Year

Despite a slowing in overall economic growth, office and industrial space leasing activity is “holding firm” in markets from Los Angeles to San Diego, and will be especially strong in the Inland Empire counties of Riverside and San Bernardino, according to Robert Dunham of the Newport Economics Group.

In the greater Los Angeles area, office space demand this year is expected to match the 9 million square feet last year, with much of the activity downtown and in the Wilshire District, he said.

Office space demand in San Bernardino and Riverside counties should equal last year’s levels of 1.5 million square feet, but the industrial sector is expected to increase from 9.5 million square feet last year to 11 million square feet in 1988, Dunham said.

In Orange County, office space demand will match the 3.6-million-square-foot record set last year, he said. The county’s research and development/corporate headquarters market will decline to 2.3 million square feet, but straight industrial space should continue at levels approaching 7 million square feet.

Northern San Diego County will continue at last year’s high level--about 425,000 square feet of office space and about 2.4 million square feet of industrial space.