Los Angeles Office Vacancy Decreases to 11.5%
The Los Angeles Office market ended the fourth quarter 2014 with a vacancy rate of 11.5%.
The vacancy rate was down over the previous quarter, with net absorption totaling positive 1,006,114 square feet in the fourth quarter. That compares to positive 943,954 square feet in the third quarter 2014.
Vacant sublease space decreased in the quarter, ending the quarter at 1,105,275 square feet.
Tenants moving into large blocks of space in 2014 include: City of Hope moving into 167,665 square feet at San Gabriel Valley Corporate Campus - Bldg 1; Molina Healthcare, Inc. moving into 120,000 square feet at Meeker-Baker Bldg; and Just Fab moving into 113,330 square feet at 800 Apollo St.
Rental rates ended the fourth quarter at $30.30, an increase over the previous quarter.
A total of three buildings delivered to the market in the quarter totaling 45,695 square feet, with 2,702,271 square feet still under construction at the end of the quarter.
This trend is compared to the U.S. National Office vacancy rate, which decreased to 10.9% from the previous quarter, with net absorption positive 37.53 million square feet in the fourth quarter. Average rental rates increased to $22.65, and 194 buildings delivered to the market totaling almost 15.9 million square feet.