The Real Deal Los Angeles

Submarket Snapshot: Mid-Wilshire

With new construction completions, vacancy increases
By Hannah Miet | February 05, 2016 05:15PM

Mid-Wilshire chart

Vacancy in Hollywood and Mid-Wilshire (credit: Colliers International)

The Mid-Wilshire office submarket saw its average total vacancy increase in the fourth quarter to 17.4 percent, up from 10.2 percent in the third quarter, according to a report by Colliers International.

The increase is owed in part to an uptick in new construction. There was 383,500 square feet of construction completed in the fourth quarter, and 915,000 square feet underway.

Mid-Wilshire’s 64 buildings totaling 10.2 million square feet saw 30,100 square feet of leasing activity and net absorption of 104,600 square feet in the fourth quarter.

Asking rents averaged $1.94 a square foot a month, even lower than the L.A. Basin average of $2.65.

Significant transactions in the submarket included Harridge Development Group’s acquisition of 3420 Wilshire Boulevard from Han Kook Property Management for $49 million. Harridge paid $333 a square foot for the potential development site.