The Miracle Mile is more expensive for office tenants than the Wilshire Corridor market it sits within, but it can’t compete with Hollywood.
Office rent averaged $3.81 in the first quarter of 2016, compared with $4.27 in the Hollywood submarket and $2.98 in the larger Wilshire Corridor/Hollywood market, according to a report by Transwestern.
The 4.8 million-square-foot Miracle Mile office submarket saw better absorption in its latest quarter. It saw 46,514 square feet of positive absorption in Q1, compared with under 9,000 in the previous quarter.
Its vacancy rate of 11.7 percent in the first quarter was the lowest in the Wilshire Corridor/ Hollywood market, which saw an average of 18.7 percent vacancy.
There was no construction started or completed in the area.
The Miracle Mile is seeing some investment action this quarter. AXA Real Estate Investment Managers US just purchased a 49 percent interest in 5900 Wilshire, a 452,765-square-foot office property opposite the Los Angeles County Museum of Art.