Office Rents in Los Angeles Increase With Tight Supply

 

The LA rental market is tight: inventory was 16% for 2015 Q1 compared

Petra Durnin, Cushman & Wakefield managing director of research for real estate brokerage, said that the office market is expected to “tighten up” some more and increase current office rents. “Looking forward, 2015 is going to be a very healthy year,” Durnin told LA Times.

Just how tight is the current supply? The LA county’s average available office inventory was 16 percent for 2015 Q1, lower compared to the recorded vacancy of 18 percent in 2014Q1, says Cushman & Wakefield. With the low supply, landlords reportedly raised their rents by 6% or almost $2.75 per sq.ft. a month.

But the interesting finding is that many submarkets are really tight, having lower than 10 percent availability. “We have a dozen submarkets below 10% vacancy now. That indicates the market strength we have been feeling is a reality,” Durnin said.

 

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