- The average rent in Hollywood/Wilshire Corridor fell to $2.80 per square foot (PSF) full service gross (FSG), a $0.05 difference from last quarter.
- Vacancy fell by 20 basis points from one quarter ago, recording 18.1%.
- Without Netflix boosting activity, leasing activity decreased for the quarter, recording 131,400 square feet.
- There was no investment activity for buildings greater than 25,000 square feet.
- The construction pipeline consists of approximately 903,700 square feet of office product, of which 773,200 square feet is Class A inventory.
The Hollywood/Wilshire Corridor submarket will continue to see demand for space from entertainment, media and technology firms as pre-leased 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 pre-leasing by major content firms has confirmed that outlook.
That optimism should be cautious as the market moves further down the road towards 2020. 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.