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ASKING RENTAL RATES UP A STRONG 12.8% FROM
ONE YEAR EGO IN THE CENTRAL LOS ANGELES OFFICE MARKET
Average asking rental rates climbed by $1.28 PSF over last quarter in the
Central Los Angeles Office Market, and were up 12.8% per annum from one
year ago. As of Q1 2008, the average rate was close to $32.25 PSF
(FSG) per year.
The vacancy rate at quarter-end was 12.6%, up 0.3% from last quarter, but
down from 13.1% a year ago. The vacancy rate in Hollywood dropped
further to 6.7%, down very sharply from 20.4% just two years ago.
Only 115,000 SF is currently under-construction in the area, and demand
is expected to be moderate, bolstered by tenants unable to find space that
meets their needs at affordable rates in adjacent markets. While
rental rates are up, the Central Los Angeles office market still remains
a bargain compared against rates in adjacent areas (in particular West
Los Angeles).
Vacancy rates are expected to tighten at a moderate pace over the next
one to two years, although a significant amount of quarter-by-quarter fluctuation
can be expected.
Contact Michael Gold at 213.532.3247 for more information.
  OFFCLA08Q1.pdf
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