The 2.4 million-square-foot Greater Downtown office submarket, which includes the Arts District, will soon see an influx of new inventory.
At the close of the second quarter, there was a whopping 878,507 square feet of construction underway in the submarket, according to a report by Transwestern.
The projects being constructed include ASB Real Estate Investments and Blatteis & Schnur’s At Mateo project.
According to the Transwestern report, 36 percent of all under-construction office space in Los Angeles is concentrated in Downtown Los Angeles, especially in the Arts District, “despite a total vacancy rate forecasted to rise to over 20 percent in that market over the next 24 months.”
Greater Downtown saw negative absorption of 525 square feet. Its vacancy rate was the lowest of all the DTLA submarkets, at 12.5 percent. The average vacancy across all Downtown submarkets was a high 17.9 percent. The L.A. Metro average was 15.3 percent.
At $2.86 a square foot a month, Greater Downtown had the lowest rent of the DTLA submarkets, which averaged $3.13.