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

Los Angeles /
Jul.July 18, 2018 09:00 AM
Westside skyline, Century City (Credit: Jim McDougall via Flickr)

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.


Related Articles

arrow_forward_ios
USPS nears lease for 100K sf distribution center in City of Industry
USPS nears lease for 100K sf distribution center in City of Industry
USPS nears lease for 100K sf distribution center in City of Industry
Renderings of the project and Brookfield Properties Managing Partner and CEO Brian Kingston (Brookfield, Los Angeles Department of Building & Planning)
Brookfield plans 350-unit apartment complex at Northridge shopping center
Brookfield plans 350-unit apartment complex at Northridge shopping center
Renderings of The Star
The Star, a $500M office tower project, looks to light up Hollywood
The Star, a $500M office tower project, looks to light up Hollywood
The Boyd Street fire in May, 2020 (Getty)
LA fire captain sues building, vape shop owners over May 2020 explosion in downtown
LA fire captain sues building, vape shop owners over May 2020 explosion in downtown
(Getty Images)
SoCal’s “Space Beach” is ready for liftoff
SoCal’s “Space Beach” is ready for liftoff
Clockwise from top left: Kilroy Realty CEO John Kilroy, Boston Properties CEO Owen Thomas, TMG Partners CEO Michael Covarrubius and Eastdil Secured CEO Michael Van Konynenburg (Kilroy, LinkedIn via Thomas, TMG Partners, LinkedIn via Van Konynenburg, Getty)
“We gotta get people back to the office”: West Coast landlord execs press for return
“We gotta get people back to the office”: West Coast landlord execs press for return
Oxford Properties CEO Michael Turner and the campus (Oxford)
Oxford moves into LA with $134M industrial buy
Oxford moves into LA with $134M industrial buy
Post-production campus in Burbank sells for $37M
Post-production campus in Burbank sells for $37M
Post-production campus in Burbank sells for $37M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...