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STEADY LEASING
Several larger leases kept quarterly deal volume on track. Quarterly leasing totaled 3.3 msf, on par with the prior quarter, but more than 10% below the market’s longterm historical average. Tenants have leased 12.7 msf in the four most recent quarters, approximately 15% below the long-term market average.
AVAILABILITY RATES UP SLIGHTLY
The region’s overall availability remained unchanged at 19.8% and Class A availability fell to 17.9% from 18.3% respectively. The Westside's Class A availability rate fell by 20 basis points to 15.9%, though, and has decreased by 70 basis points year-on-year.
ASKING RENT INCREASES
Asking rent across the Greater Los Angeles area increased by 9.3% to $39.27. The average Class A asking rent also increased by 7.3% to $40.82.
SALES DROP
Office property sales during the first seven months of the year totaled $3.8 billion, a 23.3% decrease compared to the first seven months of 2017.
"Tenants continue to seek out and find alternative locations to lease space. The South Bay area continues to see a jump in rent. Investors have also followed suit, targeting many properties that are ideal for creative office space conversions."
Savills Studley Research