Submarket Snapshot: El Segundo’s office market in Q1 2016

Area saw lowest vacancy rate and highest rental rate in the South Bay

Apr.April 20, 2016 05:00 PM

El Segundo continues to benefit from its position as an overflow market. In recent years, tenants looking for bigger spaces and cheaper rents than those in Silicon Beach locations like Santa Monica and Playa Vista entered the submarket in droves.

The result? It doesn’t have all that much space left.

El Segundo saw the lowest vacancy in the South Bay in the first quarter of 2016, at 12.1 percent, according to a report by Transwestern. The South Bay as a whole saw 18.6 percent vacancy, and the long-struggling LAX submarket saw a whopping 37.9 percent.

El Segundo also had the highest average asking rent, at $2.71 a square foot a month, compared to the South Bay average of $2.25.

The 10.1 million-square-foot submarket saw 92,763 square feet of positive absorption in the first quarter.

Related Articles

1960 Grand

Starwood, Artisan pay $127M for El Segundo building

Soon-Shiong beside his latest El Segundo buy

Patrick Soon-Shiong makes another landgrab in El Segundo

From left: Nuveen CEO Vijay Advani, Graymark founder/CEO Brian Hecktman

Graymark, Nuveen pay $97M for El Segundo creative office

2201 Rosecrans Ave in El Segundo

Continental snags $55M refi on El Segundo office portfolio

GPI Companies founders Cliff Goldstein and Drew Planting; Angelo Gordon & Company CEO Michael Gordon; and 2031 E. Mariposa Avenue

With plenty of dry powder, GPI Cos. buys El Segundo manufacturing complex

Chairman/CEO of Saatchi & Saatchi LA Kurt Ritter and 555 Aviation

Industrial chic: Iconic ad agency signs lease at Tishman Speyer building in El Segundo

Vella Group’s Zach Vella and the office in El Segundo

Development opportunity? This investment firm snagged an aging office campus in hot El Segundo

777 Aviation Boulevard, and from left: Ocean West Capital Partners Principal & co-founder Russ Allegrette and Lionstone co-founders Glenn Lowenstein and Dan Dubrowski

In booming El Segundo, Ocean West and Lionstone team up on office campus