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Medical office rents in Los Angeles are among the highest in the nation. According to a recent report from CBRE, medical office rents this year were the third highest in the nation. In the second quarter medical office rents increased .9% to $33.84 per square foot year-over-year, and the trend continued through the end of the year. A supply shortage is behind the increase in rents. During the same time period, the vacancy rate decreased 177 basis points to 5.8% over the same period.

“There is a lack of space,” Angie Weber, first VP at CBRE, tells GlobeSt.com. “We have had very little new construction for medical office in the last 25 years. Because the providers are starting to do things very differently, like go off campus and go into the neighborhoods to be amongst the rooftops, you have all this new space being gobbled up. That is obviously raising the demand.”

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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.

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