Santa Monica, the original “Silicon Beach,” saw its vacancy decrease in the fourth quarter to 11.8 percent, down from 14.8 percent in the third quarter, according to a report by Colliers International.
There are 102 office buildings in the beachside submarket, which account for 9.2 million square feet of space. They saw 139,900 square feet of leasing activity in the fourth quarter, and positive absorption of 141,400 square feet.
There was no construction completed in the tight market last quarter, but the construction of 247,ooo square feet of office space is now underway.
Rent in the tech-magnet market was an average of $4.72 a square foot a month, topping the West Los Angeles average of $4.05.
One of the biggest deal in Santa Monica in the fourth quarter was Northwoods Investors acquisition of 2105 Colorado Avenue from Pacifica Equities for $44.5 million, or $805 a square foot.