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.