Submarket Snapshot: Beverly Hills

Area sees low vacancy, negative absorption

Feb.February 16, 2016 05:00 PM

The Beverly Hills office submarket is historically strong, with the kind of high rents and low vacancy that make it hard for new tenants to enter. The fourth quarter was no exception.

The average rent at Class A offices in Beverly Hills rose to $5.23 a square foot a month in the fourth quarter, according to data from JLL, up from $5.08 in the third quarter. Rents were significantly higher than the $4.49 Westside average.

The 6.8 million square feet of office space in the submarket saw 6.2 percent vacancy in the fourth quarter, up slightly from 6 percent in the third quarter but down from 7.2 percent in the same period a year ago. It fared much better than the Westside as a whole, which averaged 13.2 percent vacancy.

However, the submarket saw negative absorption of 23,839 square feet. The Westside as a whole outperformed Beverly Hills from an absorption standpoint. The market saw 767, 340 square feet of positive absorption in the fourth quarter, coming out of a period of negative absorption in the third.

No construction was completed in Beverly Hills in the fourth quarter.


Related Articles

Carla House at 1966 Carla Ridge and Robert Shapiro

Beverly Hills properties once owned by convicted RE Ponzi schemer Shapiro sell for $69M

A home for Illya Kovalchuk when he hangs up the skates (Credit: Redfin and Getty Images)

Ex-King Kovalchuk buys Beverly Hills manse then bids LA adieu

Beverly Hills agent Steve Frankel (Credit: iStock)

Compass rings in New Year by poaching another Coldwell agent

The Beverly Hills Montage at 225 N. Canon Drive

Qatar-backed hotel firm buys Montage Beverly Hills in record deal

Four homes have been bought for a combined $400 million recently in L.A. (Credit: iStock, Wikipedia, and Westside Estate Agency)

The $100M club: LA’s priciest mansions are having a moment

From left: Howard Schwimmer and Michael S. Frankel, with 1601 W. Mission Boulevard and 2757 E. Del Amo Boulevard (Credit: Google Maps)

Rexford Industrial adds to LA portfolio with $100M in acquisitions

Andrew McDonald and At Mateo in the Arts District

Cushman’s West Coast chief talks expansion, DTLA market, the death of the starving baby broker & more

3339 Exposition Blvd. and Asher Luzzatto

Luzzatto Co. assembling creative office hub in West Adams