In LA County office market, tech leasing drove rents higher in 3Q

Tech firms that inked leases include electric scooter maker Bird, video game publisher Nexon and the biggest, online coupon service Honey

Los Angeles /
Oct.October 17, 2018 09:00 AM
Honey co-founders George Ruan and Ryan Hudson and Fourth & Traction

Tech companies keep hanging shingles in Los Angeles County.

Tech firms drove office rents higher from July to September, as overall occupancy countywide remained steady, according to a CBRE third quarter data. The Los Angeles Times first reported on the findings.

Asking rents for newer, Class A, space grew to $3.71 per square foot, up from $3.62 per square foot a year ago. The largest deal signed in the third quarter was a 130,000-square-foot lease signed by Honey, an online coupon service, at Hudson Pacific Properties’ Fourth & Traction development in the Arts District.

Tech companies found homes across the city in the third quarter.

Electric scooter company Bird inked a 58,000-square-foot lease in Santa Monica in August, while video game publisher Nexon signed a nine-year deal for its new 49,000-square-foot headquarters in El Segundo last month.

In its own office market report for Los Angeles city, Savills Studley found much of the same trends. It called  the market “top heavy,” citing much of the activity from large leases signed by tech firms. But the report also found companies were downsizing to smaller space.

According to CBRE, vacancy rates in L.A. County were about flat, rising slightly to 14.4 percent, from 14.2 percent year over year, and from the second quarter. [LAT] — Dennis Lynch 


Related Articles

arrow_forward_ios
(iStock)
LA County sued over commercial eviction moratorium
LA County sued over commercial eviction moratorium
The future of San Francisco’s Oceanwide Center is up in the air again (Getty, Foster and Partners)
Contractors pull out as Oceanwide Center sale falls through again
Contractors pull out as Oceanwide Center sale falls through again
Granite CEO Michael Dardick and Industrious CEO Jamie Hodari
Industrious partners with landlords to offer tenants satellite workplaces
Industrious partners with landlords to offer tenants satellite workplaces
Jeffrey Worther and Blackstone’s Jonathan Gray with (clockwise from top left) Media Studios, The Point, 3800 Alameda and Central Park (Getty)
Here’s what tenants pay in Blackstone and Worthe’s Burbank office portfolio
Here’s what tenants pay in Blackstone and Worthe’s Burbank office portfolio
Colorado Campus at 2041-2115 Colorado Avenue and Northwestern Mutual CEO John E. Schlifske
Northwestern Mutual picks up Santa Monica office campus for $166M
Northwestern Mutual picks up Santa Monica office campus for $166M
Hudson Pacific Properties CEO Victor Coleman and Sunset Las Palmas Studios (Google Maps, iStock)
Hudson Pacific studio revenue takes hit
Hudson Pacific studio revenue takes hit
Prop 15 property tax measure draws millions (Credit: iStock)
Prop 15 property tax measure draws millions of dollars from for and against campaigns
Prop 15 property tax measure draws millions of dollars from for and against campaigns
Brookfield CEO Brian Kingston and 725 South Figueroa Street
Here’s what tenants pay at Brookfield’s 950K sf Ernst & Young Plaza
Here’s what tenants pay at Brookfield’s 950K sf Ernst & Young Plaza
arrow_forward_ios

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

Loading...