2022 Q3 Tri-Cities Office Research Report
Sublease availability in Burbank spiked to 7.6%, as streaming giant Netflix tries to shed approximately 180,000 SF of office space at Burbank Empire Center. Netflix’s downsizing caused the sublease availability rate in Tri-Cities to increase by 100 basis points over the quarter. Tri-Cities is now one of the three office markets in Los Angeles with a rate above 5%, pushing total availability in this office market to 24.1%. The actual vacancy rate is much lower at 17.5%, as much of the marketed space remains occupied. Vacancy has increased in Tri-Cities for nine consecutive quarters, and the average asking rent has followed the same upward trend, finishing at a record high of $3.58 PSF per month. Rent growth was strongest in Burbank, up 7.7% year over year. Avion Burbank completed, bringing a six-building creative office campus totaling 142,250 SF to this submarket. There is still 865,686 SF in the Tri-Cities development pipeline, which is expected to increase vacancy further in the coming quarters.