While net absorption treaded water in the Los Angeles office market in the third quarter, vacancies climbed to a record of 20% and available sublease space surged to a new high of 10.7M SF, which is nearly 5% of the current office inventory, according to Newmark's Q3 report for the industry.
Newmark said cost-cutting measures by the tech sector is inducing tech players to reduce their office footprints in LA.
"Most tech company valuations have suffered notable losses in recent month. This is leading to cost-cutting measures, notably among firms that aggressively staffed up in recent years and exponentially grew their real estate footprints," Newmark's report said.
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