West Los Angeles Rents Continue to Rise
- The average asking monthly rent for West Los Angeles sustained its second straight quarter of $0.10 increases, moving to $4.92 per square foot (PSF) full service gross (FSG).
- Demand recorded 315,900 square feet, the ninth straight quarter of positive absorption.
- No new projects delivered from the under-construction pipeline. A total of 18 buildings remain in the pipeline.
- Investment activity maintained momentum with four properties trading, highlighted by Onni Group's long-awaited acquisition of Wilshire Courtyard.
- Leasing activity recorded 1,348,500 square feet, marking six consecutive quarters of velocity exceeding 1.1 million square feet. Century City, Culver City and Beverly Hills drove velocity for the quarter.
The West L.A. market finished the first half of 2019 with continued momentum. Demand remained positive for the quarter, and should continue to be in the black despite new construction deliveries due to strong pre-leasing activity. Rent growth slid from last quarter, but growth should remain positive for the near future.
West Los Angeles continues to be one of the premier office markets for entertainment and technology tenants, and we expect this to remain so for the foreseeable future, whether rent growth continues or not. Developers seem to agree, as new projects loom on the horizon to fill demand in the major creative markets of Santa Monica, Culver City and Marina Del Rey/Venice. Once those submarkets reach saturation, look for interest to spread to other outlying markets, similar to how West Adams has seen raised levels of leasing and construction activity in recent quarters.