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2019 Q3 Greater West Los Angeles Office Knowledge Report

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Culver City Leads West Los Angeles Demand

Key Takeaways:

  • The average asking monthly rent for West Los Angeles increased for the third consecutive quarter, rising to 4.88 per square foot (PSF) full service gross (FSG).
  • Demand recorded 554,900 square feet, the tenth straight quarter of positive absorption.
  • Four new projects delivered from the under-construction pipeline. A total of 15 projects remain in the pipeline. 
  • Investment activity maintained momentum with three properties trading this quarter, highlighted by Rockpoint Group’s acquisition of 5800 Wilshire Boulevard.
  • Leasing activity recorded 1,420,400 square feet, marking seven consecutive quarters of velocity exceeding 1.1 million square feet. Santa Monica, Miracle Mile and Beverly Hills drove velocity this quarter.

Outlook:

The West L.A. market finished the third quarter of 2019 with continued momentum. Rent growth momentum should remain positive for the near future. Demand should continue to be positive despite new construction deliveries due to strong pre-leasing activity. That being said, any effects from WeWork’s wayward IPO bid may have consequences for the West Los Angeles market, which is home to more than half of the company’s locations in Los Angeles. 

Nevertheless, 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.

 

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Greater Los Angeles West Office Knowledge Report

2019 Q3 Greater West Los Angeles Office Knowledge Report

Download Report