SFV & Ventura Markets Improves Second Quarter
- The San Fernando Valley and Ventura County office market closed the second quarter with essentially flat movement as net absorption recorded only 9,600 square feet.
- The office market vacancy rate remained unchanged from last quarter at 12.4%.
- Rental rates continued to increase. Average asking rental rates increased by $0.03 from the first quarter to $2.58 per square foot (PSF) full service gross (FSG).
- No new projects were delivered in the second quarter, though three projects totaling 377,700 square feet are currently under construction.
- The Los Angeles County unemployment rate decreased to 4.5%, a decrease of 10 basis points from last year. Education and health services listed the largest year-over-year employment gain by adding 18,600 jobs. Professional and business services posted the second greatest growth, adding 13,600 jobs.
SFV & Ventura County Office Market:
Activity in the San Fernando Valley and Ventura County office market gained momentum as a few noteworthy lease transactions signed. Net absorption recorded 9,600 square feet in the first quarter, while vacancy remained unchanged at 12.4%. Asking rental rates recorded $2.58 PSF FSG, a 7.5% year-over-year increase. With only three new projects under construction on the horizon, the market will remain supply constrained. It is expected market conditions will remain positive as businesses look for lower-cost alternatives compared to the market areas surrounding San Fernando Valley and Ventura County.