In Los Angeles County, overall vacancy rates dropped to 17.9% from 18.1% in the previous quarter, with C&W saying it expects leasing activity to pick up in the second half as companies "start seriously making long-term facilities decisions for the first time since the market shifted in late 2000."
The countywide vacancy rate, which was up a tenth of a percent from the second quarter a year ago, consisted of 15.1% direct space and 2.7% sublease space. C&W tracks 1,405 buildings with 182.8 million sf in the county.
Downtown Los Angeles stands out in the report as one of only two CBDs in the nation--the other being Washington, DC--that is not in a downturn. The study shows that average asking rental rate rose to $25.56 per sf in the Downtown LA market from $24.72 per sf in the previous quarter. Despite these upbeat signs, the local CBD, where the overall vacancy was 19.9% in the second quarter, still has some way to go before it reaches equilibrium, the report says.
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