Market Activity End 2019 On Positive Note
- The San Fernando Valley and Ventura County office market finished 2019 with positive movement as net absorption recorded 200,300 square feet.
- The office market vacancy rate decreased by 60 basis points from last quarter to 12.4%.
- Average asking rental rates increased by $0.01 from the second quarter to $2.62 per square foot (PSF) full service gross (FSG).No new project were delivered in the fourth quarter, though two projects totaling 343,400 square feet are currently under construction.
- The Los Angeles County unemployment rate decreased to 4.4%, a decrease of 30 basis points from last year. Education and health services listed the largest year-over-year employment gain by adding 35,700 jobs. Professional and business services posted the second greatest growth, adding 14,700 jobs.
The San Fernando Valley and Ventura County office market is a moderately sized market with 33.9 million square feet, representing 12% of office buildings 25,000 square feet and greater in the Los Angeles Basin. Leading industries in the Central and East San Fernando Valley submarkets include finance, insurance, professional services and entertainment, while the West San Fernando Valley and Conejo Valley submarkets include healthcare, high-tech and defense sectors.