Hollywood/Wilshire Corridor Rents Rebound
- The average rent in Hollywood/Wilshire Corridor at the end of 2019 rose to $2.90 per square foot (PSF) full service gross (FSG), a $0.10 difference from last quarter.
- Although absorption recorded positive 97,300 square feet, vacancy increased by 100 basis points to 19.1%.
- Leasing activity dropped for the quarter, recording 114,800 square feet.
- There was no investment activity for buildings greater than 25,000 square feet.
- The construction pipeline consists of approximately 601,600 square feet of office product, of which 471,100 square feet are 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.