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The office vacancy rate in Los Angeles increased in the first quarter. According to a market report from Savills, the office vacancy rate bumped up 50 basis points in the first quarter. While the increase is nominal, the increase shows the impact of new office product coming online. By comparison, class-A and new construction product continues to lease quickly, and the vacancy rate for that segment of the market decreased by 110 basis points.

“The delivery of additional inventory is driving the vacancy rate up,” Matt Brainard, senior managing director at Savills, tells GlobeSt.com. “This includes both speculative office development and the repositioning of older assets. The new product tends to lease more quickly than the second-generation space.”

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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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