| |
|
OFFICE VACANCY CONTINUES TO RISE TO LEVELS LAST SEEN IN 2006
At year-end, the Central Los Angeles office market saw
-62,600 SF of net absorption as companies continued to consolidate space. As mentioned in previous reports, while the rate of deterioration in office market fundamentals has not been as pronounced as in other office markets within the
Greater Los Angeles Basin, the total vacancy rate increased an additional 20 basis points from 14.6% reported in Q3 to 14.8% reported in Q4. As a result, a total of 366,000 SF of office space has been returned to the market vacant in 2009.
Although leasing activity was up over last quarter, it continued to remain low with only 351,500 SF. However, there is more tenant interest than in the first half of 2009 to lock in rental rates that are widely seen as bottoming. Direct weighted average asking rental rates ended the year at $30.24 per square foot, per annum Full Service Gross (FSG). It should be noted that in the current office market
environment, quoted office rents in the Central Los Angeles market have meant significantly less as landlords have become increasingly aggressive in leasing any space they have.
The Central Los Angeles office market continues to be one of the relatively better performing office markets in the Greater Los Angeles Basin but office market fundamentals are expected to remain weak with a low level of leasing activity, declining rents, and rising vacancies and availabilities as long
as the lack of employment growth continues.
Contact Michael Soto at 213.532.3220 for more information.
  OFFCLA09Q4.pdf
Email Report Link To Your Friend
|
|