Submarket Snapshot: Santa Monica’s office market in Q1 2016

Area saw negative absorption

Apr.April 11, 2016 05:24 PM

Office rents are high in the heart of Silicon Beach, but so is vacancy.

Santa Monica’s 9.3 million-square-foot office market saw 14.4 percent vacancy in the first quarter. It had a higher percentage of empty space than the West Los Angeles market at large, which saw an average of 12 percent vacancy, according to a report by Transwestern. 

The area also saw 74,403 square feet of negative absorption.

Yet its rents continued to outpace West Los Angeles averages. The average asking rent for office space in Santa Monica was $5.12 a square foot a month in the first quarter, compared to the Westside average of $4.52.

There was 422,000 square feet of office space under construction in the first quarter, including the more than 200,000-square-foot Pen Factory adaptive reuse project.

Related Articles

From left: Alan, Adam, and Alex Shekhter, with renderings of 501 Broadway and 601 Colorado (Credit: WS Communities and LinkedIn)

Shekhters’ WS Communities lands $157M loan to build 850 rental units in Santa Monica

1314 7th Street, Santa Monica and Divco West CEO Stuart Shiff

Rockwood Capital pays $66M for Santa Monica phone building

Adam Shekhter and the 1415 5th Street project

WS Communities boosts affordable housing plans in Santa Monica

The 5 priciest residential sales

Here are the 5 priciest resi sales in LA County last week

Clockwise from top left: 1155 Angelo Drive, 1116 Laurel Way, 613 N. Sierra Drive, 32453 Pacific Coast Highway and 705 N. Arden Drive (Credit: Redfin)

Beverly Hills dominates list of top resi sales in LA County last week

Lightstone’s Eugene Rozovsky, Neil Shekhter and a rendering of 1650 Lincoln Boulevard

Lightstone provides $44M loan to Shekhter-owned WS Communities

Pierce Brosnan and his new home in Santa Monica

“The world is not enough,” but for one former James Bond this Santa Monica pad is

Witkoff Group’s Steve Witkoff and a rendering of the project at 500 Broadway

Witkoff Group snags construction loan for Santa Monica luxury development