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INCREASED LEASING ACTIVITY & LARGEST OFFICE SALE IN REGION HIGHLIGHT END OF 2009
Despite the continued increase in vacancy rates and decline in average rents, the West Los Angeles office market in Q4 saw an increase in leasing activity, a continued improvement in the rate at which firms gave back space, as well as the largest office sale in the region this year. Net absorption in Q4
was -30,600 SF which was an improvement from the -219,700 SF reported in Q3. Despite the improvement in the rate at which space has been returned to the market vacant by year-end, the West Los Angeles still saw net absorption of -1.5 million SF in 2009.
Weighted average asking rents ended the year at $3.43 per square foot, per month Full Service Gross (FSG). The aggressiveness at which rents have declined over the past 18 months has allowed many office tenants to negotiate deals at starting rental rates last seen three years ago. In addition, leasing activity increased to 954,200 SF which is a 39% increase over last quarter and a 98% increase over an all-time low of just 482,900 SF reported two quarters ago. As the West Los Angeles office market looks forward into 2010, there is more optimism that the market may have already bottomed and is beginning to stabilize.
Contact Michael Soto at 213.532.3220 for more information.
  OFFWLA09Q4.pdf
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