X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Doug Ressler“The Los Angeles office area has emerging supply-side issues,” according to Doug Ressler of Yardi Commercial Café, but the market has a swelling construction pipeline that could oversupply the market. New research from Commercial Café on office construction shows that 2.9 million square feet of new office product will deliver this year, and 2.5 million square feet is scheduled to deliver in the second half of the year. With a construction pipeline of this size, Los Angeles ranks 11th in the country and third on the West Coast for office construction. This new supply could prove to test demand instead of satisfy it.

“The new supply will test the strength of tenant demand,” Ressler, director of business intelligence at Yardi-Matrix tells GlobeSt.com. “This will be especially true in tech and co-working firms. Los Angeles midtown has typically been a low vacancy/high demand markets; however, there is pressure on this model as large leasing, defined as 50,000 square feet-plus, has slowed and renewal rates are softening.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

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.

More from this author

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.