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LEASING DOWN SLIGHTLY
Los Angeles’ leasing volume held steady during the second quarter of the year, with 3.4 million square feet (msf) leased. Quarterly volume fell back below the 3.7 msf long term average. Tenants have leased 12.7 msf in the four most recent quarters, approximately 17% below the long-term market average.
LITTLE CHANGE IN AVAILABILITY RATES
The region’s overall and Class A availability rates both inched up slightly, rising to 19.7% and 18.3%, respectively. The Westside's Class A availability rate fell by 50 basis points to 16.3%, though, and has decreased by 280 basis points year-on-year.
ASKING RENT FLAT
Asking rent across the Greater Los Angeles area inched down by 0.5% to $35.93. The average Class A asking rent dipped by 1.3% to $38.05.
SALES DROPS
Office property sales during the last six months (through May 2018) totaled $3.4 billion, a 37% decrease compared to the previous six–month total of $5.5 billion.
"Leasing activity continues to diverge widely from one market to the next. Traditional space occupiers in Downtown are still restraining their demand. On the Westside, tenants are pushing to new emerging micro-districts, and aggressively pursuing space."
Savills Studley Research