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2021 Q4 South Bay Office Research Report

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2021 Q4 South Bay Office Research Report

Key Takeaways

  • Nearly 2.4M SF of leasing activity in the South Bay office market was recorded in 2021, making up 19% of the Los Angeles total.
  • Over half of South Bay leasing activity in 2021 was in El Segundo & Beach Cities, where the Class A average asking rate reached a historic high of $4.28 PSF per month.
  • While direct vacancy decreased over the quarter, sublease vacancy increased by 20 basis points to 2.2%.
  • Average asking rates are up 5.5% over the year, the highest annual increase of any Los Angeles office market.
  • South Bay is the only office market with leasing volume back to pre-pandemic levels.
  • Private aerospace companies continue to grow in South Bay, especially in El Segundo where demand is high for flex and R&D space.

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2021 Q4 South Bay Office Research Report

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