Los Angeles (Downtown) 2018 Effective Rent Index

MODEST INCREASE IN RENT DESPITE CHOPPY DEMAND

Takeaway

Dependency on the legal, banking and professional/business services sectors kept leasing in Downtown Los Angeles from gaining much momentum during 2017. Tenant effective rent pushed above $30/sf in 2017, but is still well below rent in West Los Angeles. The greater Los Angeles economy seems to be losing some momentum and may have already pushed past its peak. Moderating demand should curb rent growth during 2018.

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