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2019 Q2 Los Angeles Hollywood/Wilshire Corridor Office Knowledge Report

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Hollywood/Wilshire Corridor Rent On The Rise

Key Takeaways:

  • The average rent in Hollywood/Wilshire Corridor rose to $2.85 per square foot (PSF) full service gross (FSG), a $0.14 difference from last quarter.
  • Vacancy moved up by 140 basis points from one quarter ago, recording 18.3%.
  • Leasing activity was once again buoyed by Netflix transactions, recording 242,500 square feet.
  • Investment activity for buildings greater than 25,000 square feet recorded $8.8 million over a single transaction.
  • The construction pipeline consists of approximately 773,200 square feet of office product under construction and 191,600 square feet of proposed construction.

Market Overview:

The Hollywood/Wilshire Corridor submarket will continue to see demand for space from entertainment, media and technology firms as preleased properties are delivered to the market, although the pipeline has dried up considerably from its height a year ago. As evidenced by recent groundbreakings set for delivery in 2020, developers still see room to run in the submarket, and preleasing by major content firms has confirmed that outlook.

That optimism should be cautious as the market moves further into 2019. Rental rate growth, which had been negative and was essentially unchanged this quarter, has again picked up steam. How much further they may climb will be left to the content creation and distribution industry to determine.

 

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2019_Q2_HollywoodOffice

2019 Q2 Los Angeles Hollywood/Wilshire Corridor Office Knowledge Report

Download Report