Submarket Snapshot: Greater DTLA office market in Q1 2016

Area, which includes Arts District, sees development and the lowest vacancy rate in the DTLA market

Apr.April 28, 2016 05:21 PM

Greater Downtown, a submarket that includes the Arts District, saw the lowest vacancy and the lowest rents out of all the Downtown submarkets in the first quarter of 2016, according to a report by Transwestern.

The 2.4 million-square-foot office market saw 12.5 percent vacancy in Q1, compared to 20.9 percent in Bunker Hill, 17 percent in the Financial Core and 15.5 percent in South Park.

It also had the lowest average rent, at $2.75 a square foot a month, significantly lower than Downtown’s priciest submarket, Bunker Hill, which clocked in at $3.35.

Greater Downtown saw 67,978 square feet of positive absorption.

There was 790,854 square feet of office space under construction. This included the Arts District’s Ford Factory building at 2060 East Seventh Street, a 254,000-square-foot creative conversion by Shorenstein Properties.

Related Articles

Equity Residential CEO Mark Parrell and a rendering of the 4th and Hill tower

Equity Residential’s long-stalled DTLA residential tower project is back

Spotify CEO Daniel Ek and At Mateo (Credit: Spotify)

Spotify expands to 150K sf in the Arts District: sources

Terreno Realty Chairman & CEO W. Blake Baird

Terreno Realty makes another industrial play in LA

The building with Cross Campus founder Ronen Olshansky and Suge Knight

From The Chronic to co-working: Cross Campus’ LA expansion now includes former Death Row Records HQ

Los Angeles City Planning Commission President Samantha Millman and a rendering of the Flower Market project (credit: Brooks + Scarpa and Twitter)

Development bloom: SoCal Flower Market mixed-use project in DTLA clears hurdle

Downtown Los Angeles (credit: Jeff Cleary and Laurie Avocado)

Rezoning Downtown — Skid Row included — must include more affordable housing, advocates say

From left: Tom Gores and Mark Falcone with the project site

Continuum Partners sells Arts District project site to Tom Gores’ Platinum Equity

Lizard Capital CEO Bingyi Huang and a rendering of the Spring Street Hotel

Appeal settled, Lizard Capital’s jagged-look DTLA hotel project has start date