Submarket Snapshot: Greater Downtown in Q2 16

Area that includes the Arts District saw 878,507 sf of construction

TRD LOS ANGELES /
Jul.July 08, 2016 05:00 PM

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.


Related Articles

arrow_forward_ios
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

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

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

Ron Burkle owns Soho House

Soho House is expanding into the Arts District

Miro founder Andrey Khusid and Row DTLA

Atlas and Square Mile sign lease with tech startup at Row DTLA

Christian Johnston and ARCspace

Amid LA’s housing shortage, enter the prefab — and stylish — home

Ghost Management CEO Doug Francis and Row DTLA

Weedmaps’ Ghost Management Group inks space at Row DTLA

arrow_forward_ios