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.