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Report: DTLA Office Market Stabilizes in Third Quarter
A recent report from Avison Young offers some encouraging news for the Downtown Los Angeles office market. Unemployment has dropped 3.3% year-over-year in the LA Metro, standing at 5.2% and physical occupancy increased to 44.6% in September, indicating employees are returning to the office on a more regular basis.
That being said, as hybrid strategies become more commonplace, companies are working to adjust their office spaces to accommodate the hybrid schedules. Leasing activity is up 7.8% in 2022 compared to 2021, but there’s been a decrease of nearly 975,000 square feet of space.
Office supply has stabilized, but third quarter vacancy remains historically high at 27.7%, a slight 0.4% increase from Q2. Meanwhile, office net absorption in DLTA actually increased 64,000 square feet in Q3.
Finally, office rents are holding steady on an annual basis, averaging $46.32 per square foot, with the Arts District the priciest at $60.53.
- ◦Economy
