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DTLA Office Rate Still Hovers at 18% | Tony Seruga
Dec
14

DTLA Office Rate Still Hovers at 18%

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Carol Schatz: “The office sector is typically the last market sector to capitalize from an urban renaissance.”

LOS ANGELES—The Downtown Los Angeles office vacancy rate is still hovering in the high teens, according to the latest report from the DCBID. While the number is inching down from more than 20.4% to 18.4% in the last year, it is still significantly higher than the office vacancy in Los Angeles, which was 15.1% in 3Q15, according to office reports from several firms.

Still, the DCBID doesn’t see the high vacancy as a cause for concern. “This is partly due to shifts in how companies use space. While 800,000 square feet of new tenants moved into downtown from other markets over the last five year, that has been off-set by the rightsizing of the largest tenants in the traditional FIRE industries (Finance, Insurance, Real Estate), who are not reducing headcount, but using less space per employee,”Carol Schatz, president and CEO of the DCBID, tells GlobeSt.com. “It is also because many of the top buildings are under new ownership which is investing their investment in upgrading properties, which is just starting to show results as rents are going up and landlords are not rushing to fill space, preferring to find quality tenants.” She notes large-scale leases like the Capital Group signing 305,000 square feet and Lewis Brisbois 215,000 square feet as evidence that things are moving in the right direction…

DTLA Office Rate Still Hovers at 18%

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