Greater LA office vacancies rose slightly in Q2 on new inventory: report
But average asking rent was up more than 4 percent for the same period
The office vacancy rate in Greater Los Angeles was up slightly in the second quarter compared to last year, as new inventory hit the market. Average asking rents increased over the same period, indicating a stable overall market.
In South Park, office vacancy jumped to 20.4 percent in the second quarter, up 7.9 percent from Q1, according to the latest figures from Cushman & Wakefield.
That was likely the result of Transamerica’s departure from 150,000 square feet at LBA Realty’s 1150 S. Olive Street. There is no office space under construction in South Park, although it’s not all grim. There is plenty is being planned, along with residential and hotel projects.
The vacancy rate for Greater L.A. was at 15.4 percent for the second quarter, up 1 percent year over year, after new inventory hit the market. The rate remained unchanged, however, from the first quarter of 2018, according to the Cushman report.
Average office asking rent was $3.32 per square foot, unchanged from the first quarter, but up 4.4 percent year over year.
Growth in asking rents was strongest in the south side of the city, stretching from El Segundo to Long Beach, which saw a 14 percent year-over-year. The south side of the city also saw the most expensive trade of the second quarter — the $124 million sale of the 27-acre Torrance Tech Campus. The sale came out to $216 per square foot.
Asking rents were highest in the Westside in the second quarter, but dipped to $4.64 per square foot from $4.74 per square foot in the first quarter. The Westside also accounts for half of the 2 million square feet of office space currently under construction.