LOS ANGELES-Downtown’s office vacancy factor has dropped to its lowest level in a decade, a new report by Cushman & Wakefield says, as more tenants flock to the market to take advantage of some of the Southland’s lowest rental rates.

The Central Business District’s third-quarter vacancy rate of 15.8% was down from 17% at mid-year and more than 20% in the third quarter of 2000, according to the C&W report. Net absorption hit 300,000 sf. “I have never seen the Downtown market as fundamentally strong as it is now,” sums up John Eichler, director of real estate services for Cushman & Wakefield’s LA office.

Some other big Southland office markets suffered. C&W reports that the vacancy factor on the tech-heavy Westside jumped to 13.1% in the third quarter from 10.7%, as many dot-coms and other technology companies continued to give up space. Compounding problems, the report says, is that another 2 million sf of Westside space is under construction—compared to virtually zero in Downtown.

Failing technology tenants and new office projects pushed the vacancy rate higher in neighboring Orange County too, C&W says. Its third-quarter vacancy factor was 16.9%, up a full two percentage points from the previous three months.

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?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


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 © 2024 ALM Global, LLC. All Rights Reserved.