L.A. Office Vacancy Rate Increased This Year
The office vacancy rate in Los Angeles increased in the first quarter. According to a market report from Savills, the office vacancy rate bumped up 50 basis points in the first quarter. While the increase is nominal, the increase shows the impact of new office product coming online. By comparison, class-A and new construction product continues to lease quickly, and the vacancy rate for that segment of the market decreased by 110 basis points.
“The delivery of additional inventory is driving the vacancy rate up,” Matt Brainard, senior managing director at Savills, tells GlobeSt.com. “This includes both speculative office development and the repositioning of older assets. The new product tends to lease more quickly than the second-generation space.”
Value-add and redeveloped office space makes up a majority of the new office product coming to the market.