2022 Q3 South Bay Office Research Report
South Bay sublease availability reached nearly 5%, caused by sublease space coming online in El Segundo/Beach Cities. The overall vacancy rate in South Bay has been increasing since the start of the year, ending at 24.8%. The sharpest increase over the quarter was in Downtown Long Beach, where the vacancy hiked 300 basis points to 29.7%. Rent growth was strong throughout the pandemic in South Bay compared to other major Los Angeles office markets but has now decreased for the second consecutive quarter to $3.23 PSF per month. Office demand weakened in this office market, as year-to-date leasing activity of 1.4M SF fell short of the amount recorded in 2021 by 31.2%.