Skip to main content Skip to footer

2019 Q3 Greater Los Angeles Basin Office Knowledge Report

Download Report

Greater L.A. Market Rents and Demand Increase

Key Takeaways:

  • The Greater Los Angeles Basin office market posted positive demand of 763,900 square feet. Vacancy fell 10 basis points to 14.1%.
  • Asking rental rate growth recorded 3.4% year-over-year to end at $3.26 per square foot (PSF) full service gross (FSG). This is the lowest rental growth the market has experienced since the second quarter of 2014.
  • Activity from entertainment, biotech/healthcare and co-working tenants drove overall leasing activity of 5.6 million SF for the quarter.
  • There were 964,900 square feet of construction deliveries, leaving 7.9 million SF currently under construction. 
  • The Los Angeles Basin unemployment rate rose from last quarter, ending at 4.1%. Total civilian job growth was flat as the economy maintained essentially full employment.

Outlook:

The Los Angeles County office market recorded 657,800 square feet of net absorption. Construction deliveries of 616,600 square feet led to a static vacancy rate of 14.5%. West Los Angeles accounted for 84% of the total demand for the quarter. What effect WeWork’s status has on West and Downtown Los Angeles, which together account for 66% of the co-working giant’s Los Angeles footprint, will bear watching in the quarters ahead. The average asking rental rate recorded $3.49 PSF FSG, as growth slowed to 4.0% year over year. Still, rates increased in every submarket, aside from Hollywood/Wilshire Corridor. Construction remains concentrated in Downtown and West Los Angeles, accounting for 67% of construction in the county.

 

Subscribe

 


GLA Basin Office Report

2019 Q3 Greater Los Angeles Basin Office Knowledge Report

Download Report