LOS ANGELES-The Los Angeles Studley Report forthe third quarter shows that vacancy rates fortraditional office properties in Los Angeles haveremained stagnant again as they have for the past seven quarters.Overall, vacancy rates for office properties stand at 19.4% and20.6% for class-A properties.

“Given the uncertainty in the broader economy and the ampleopportunities available to tenants, landlords are eager to retaintenants,” says Mike Catalano,Studley EVP and branch manager of the firm's WestLos Angeles office. “This mindset dovetails perfectly withcompanies' hesitancy to take on the additional expendituresassociated with relocations.”

Regional leasing activity remained relatively stagnant as well,down .4% from the second quarter with lease renewals currentlydominating the market. Rents for class-A properties increasedslightly from $29.98 to $30.10. The report, however, notes thatthis number may be skewed due to large concession packages offeredin many higher-end submarkets. Considering concession packages, thereport places rents for class-A under $30.00 and overall rents at$28.93.

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.