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LEASING INCREASES
Following a slower quarter of activity, with 2.7 million square feet (msf) leased – quarterly activity increased to 3.4 msf during the first quarter. Tenants have leased 12.6 msf in the four most recent quarters, 18.8% lower than the long-term market average.
CLASS A AVAILABILITY FALLS
While the market’s overall availability rate increased by 10 basis points from 19.5% to 19.6%, the Class A availability rate fell by 40 basis points to 18.3%.
STABLE ASKING RENT
Asking rent across the Los Angeles market was essentially flat, ticking down by 0.2% to $36.18 during the first quarter. The average Class A asking for the region also inched down by 0.2% to $38.53.
SALES UP
Office property sales during the last six months (through February 2018) totaled $6.4 billion, a 45% increase compared to the previous six–month total of $4.1 billion.
"Several larger leases among top tech firms has kept deal volume relatively steady in West Los Angeles. Demand for production space in Culver City has been particularly brisk. In contrast, activity Downtown remains subdued."
Savills Studley Research