Los Angeles Office Market Report

2nd Quarter 2019

Posted In — Market Research | Market Report

The Los Angeles office market continued to remain stable in 2Q19, amidst the slow delivery of new supply. Overall employment growth in LA County has aided office market stability and remains positive. The unemployment rate in Los Angeles sits at 4.5%, and is higher than the national average of 3.6%. According to the State of California’s Employment Development Department, a total of 46,200 jobs were added this year. Professional, business, education, health, government, and information companies added 25,400 jobs since May. Vacancies are higher in traditional office neighborhoods like Miracle Mile, Mid-Wilshire, Park Mile and CBD Los Angeles. Leasing activity has increased in sprawling, artsy and bohemian areas such as West Hollywood, Beach Cities and Southeast Los Angeles, where vacancies are the lowest. It is no surprise, asking rents continue to climb to post-recession highs, although vacancy rates have remained leveled at 9.8%. Demand is healthy, as over 7.4 million SF in supply is underway mostly in DTLA, Culver City and Hollywood. With healthy job growth, tighter vacancies and tenant demand fundamentals are in place to keep the office market strong in LA.

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