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DTLA Office Market Continues to Climb
Downtown Los Angeles’ commercial office leasing activity, average rent, and net absorption are all climbing steadily. The Downtown Center Business Improvement District’s (DCBID) “2018 Q2 Downtown LA Market Report” notes the office market is finally catching up to the dynamic growth experienced in the residential market, as well as on the cultural, culinary, and entertainment scenes.
Office demand was illustrated by Arup’s 66,000-square-foot lease to move its HQ from Playa Vista to the recently-completed Wilshire Grand Center in DTLA’s financial district.
DCBID’s Nick Griffin says, “Now L.A.’s top companies in key industries are taking notice – drawn by the area’s unparalleled access to talent, creative energy, and the same vibrant lifestyle that is attracting people to live here. The accelerating pace of office leasing overall – and deals in key sectors like technology, media, architecture and design – is the coming to fruition of what we’ve been seeing bubbling under the surface for a while now.”
Q2 Highlights:
Office:
- 17.3% Office Vacancy; 3% increase YOY
- $3.62 PSF Class A Lease Rate; 6.8% increase YOY
- 1.5M SF YTD Leasing Activity; 25% increase YOY
Retail:
- 4.1% Vacancy Rate; 14.6% decrease YOY
- $2.57 PSF Lease Rate; 3.6% increase YOY
- 113,554 SF Net Absorption; 203% increase YOY
Hospitality:
- 76.4% YTD Occupancy Rate; 1.8% decrease YOY
- $225.60 YTD Average Daily Rate; 1.7% increase YOY
- $172.25 YTD Average RevPAR; .30% increase YOY
Residential:
- 94% Occupancy rate for Apartments; 9.3% increase YOY
- $3.06 PSF Average for Apartments; 4.1% increase YOY
- $2,603 Average Effective Rent per Unit; 3.4% increase YOY
- 88 Condo Sales; 79% decrease YOY
- $654 PSF Condo Price; 23.7% decrease YOY
For comments, questions or concerns, please contact Dennis Kaiser
