The Downtown Los Angeles office market is an enigma, and thefourth quarter report from the DCBID is a perfect example of themarket dynamic. In the fourth quarter, the vacancy rate increased9.6%, while the class-A lease rate also increased 5.4%. Leasingactivity clocked in at 3.8 million square feet, while netabsorption was negative 4,305 square feet.

"The movement of the vacancy rate in this quarter wasattributable to several factors. We added a couple hundred thousandsquare feet of office space with the Trust Building ,7^th and Olive and a few buildings on Broadway,"Nick Griffin, executive direction at the DCBID,tells GlobeSt.com. "So, we have added inventory. There were a fewdepartures that had been announced a while back but took effectthis quarter, including Thomson Reuters, which is pulling out ofSouthern California in general, and City National. So, I think thevacancy rate has more to do with moving around and new inventorythan broader demand."