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Market Trend: Los Angeles's Office Vacancy Decreases to 12.3%

Net Absorption Positive 950,772 SF in the Quarter
January 17, 2014
The Los Angeles Office market ended the fourth quarter 2013 with a vacancy rate of 12.3%.

The vacancy rate was down slightly over the previous quarter, with net absorption totaling positive 950,772 square feet in the fourth quarter. That compares to positive 1,819,608 square feet in the third quarter 2013. Vacant sublease space decreased in the quarter, ending the quarter at 1,550,379 square feet.

Tenants moving into large blocks of space in 2013 include: L.A. Superior Court moving into 436,000 square feet at Governor Deukmejian Courthouse; PricewaterhouseCoopers, LLP moving into 133,363 square feet at 601 S Figueroa; and HULU moving into 95,113 square feet at 2500 Broadway in Santa Monica.

Rental rates ended the fourth quarter at $29.19, an increase over the previous quarter.

A total of 17 buildings delivered to the market in the quarter totaling 226,909 square feet, with 792,748 square feet still under construction at the end of the quarter.

This trend is compared to the U.S. National Office vacancy rate, which decreased to 11.5% from the previous quarter, with net absorption positive 25.62 million square feet in the fourth quarter. Average rental rates increased to $22.06, and 177 buildings delivered to the market totaling more than 11.7 million square feet.

The information in this news report is based on CoStar’s Fourth Quarter 2013 Market Report, a 40+ page comprehensive research report available to CoStar subscribers. To learn more about quarterly research reports and other benefits available to CoStar subscribers, please call 888-226-7404.
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