Skip to main content Skip to footer

2019 Q3 Greater Los Angeles Downtown Office Knowledge Report

Download Report

Downtown Los Angeles Vacancy and Rent Rise

Key Takeaways:

  • The Financial District submarket accounted for the lion’s share of leasing volume for the quarter, recording nearly 65% of all activity.
  • Move-ins in the Greater Downtown/Arts District and South Park submarkets drove demand of 70,800 square feet in Downtown Los Angeles this quarter.
  • Despite positive absorption, vacancy rose 60 basis points to 18.7%.
  • The overall asking rental rate rose to $3.61 per square foot (PSF) full service gross (FSG), an increase of 5.3% year-over-year.
  • There was no investment activity for buildings greater than 25,000 square feet this quarter.
     

Outlook:

Downtown L.A. vacancy is expected to contract slightly as positive demand counters new construction deliveries. Interest from out-of-market tenants persists, especially in the media and technology industries, and has helped legitimize Downtown Los Angeles as a competitor to markets such as Hollywood and Silicon Beach. The delivery of a slate of new projects in the Greater Downtown/Arts District submarket will continue to exert upward pressure on asking rental rates, particularly in Class B inventory.

WeWork’s recent IPO missteps will figure prominently in the Downtown Los Angeles market, where its 400,000-square-foot presence is their second largest footprint in the Greater Los Angeles region after West Los Angeles.

 

Subscribe

 


Q3 Los Angeles Orange County Office Report

2019 Q3 Greater Los Angeles Downtown Office Knowledge Report

Download Report