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RENTS CONTINUE TO FALL IN WEST LOS ANGELES AS AREA PREPARES FOR A JOBLESS RECOVERY
The West Los Angeles office market in Q3 continued to see a rise in vacancy levels albeit the rate at which firms gave back space has continued to slow. With net absorption in Q3 of -219,700 SF a slight improvement from the -246,000 SF of net absorption seen in Q2, the total vacancy rate increased 50 basis points from last quarter to 14.4%.
Landlords continue to be aggressive at leasing up any available space they have. This has allowed tenants to negotiate contract rents often 10-15% below quoted asking rents which now stands market-wide at $3.47 per square foot, per month Full Service Gross (FSG). As rents have come down
over the past two years in West Los Angeles and pent up demand from the first half of 2009 results in more deals getting done now, leasing activity has increased to 685,200 SF. On the other hand, unless companies begin hiring again, the days of single-digit vacancy rates in West Los Angeles are
quickly becoming a distant memory.
Contact Michael Soto at 213.532.3220 for more information.
  OFFWLA09Q3.pdf
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