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AVERAGE ASKING RENTAL RATE DOWN IN THE LOS ANGELES BASIN OFFICE MARKET
As the economy of the Los Angeles Basin has continued to slow, the office market in Q2 2008 experienced negative net absorption (-752,200 SF) Basin-wide for the fourth consecutive quarter. The Basin’s vacancy rate climbed 60 basis points from last quarter to 13.8%. These combined factors resulted in average asking rental rates to decrease Basin-wide for the first time in several years.
With the regional economy expected to remain weak throughout the remainder of 2008, vacancy rates are forecasted to climb by another 100 basis points by the end of the year. In addition, expect continued downward pressure on average asking rental rates as the rapid rental growth experienced over the last two years has officially come to an end. Overall, the Los Angeles Basin office market is reflective of the slowdown in the regional economy, as well as the difficulties in the credit markets.
Contact Michael Soto at 213.532.3220 for more information.
  OFFLAB08Q2.pdf
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