Skyscraper Rents Continue to Soar

Rents are increasing in both Downtown Los Angeles and Century City for Skyline office properties.

LOS ANGELES—Rents for skyline office properties in Los Angeles are hitting record highs and are positioned to climb even higher, according to a new JLL report focusing on skyline properties in Downtown Los Angeles and Century City. Improving vacancy rates are driving rents up, and skyline property owners are performing upgrades that will also secure higher rents.

“Occupancy in the Downtown Los Angeles skyline increased from 81.9% to 82.7% over the last 12 months, and it was driven by robust tenant demand,” Henry Gjestrum, JLL senior research analyst, tells GlobeSt.com. “Consolidated ownership groups have pushed rents 4.6% in 2015, up from 2.39% in 2014. Significant lobby and plaza upgrades are well underway within the Skyline and will enhance the overall offering for current and prospective tenants while driving asset value for landlords.” Properties in Downtown Los Angeles are garnering $3.46 per square foot, while trophy assets are garnering $3.59 per square foot.