The Los Angeles Office market ended the second quarter 2013 with a vacancy rate of 12.7%.
The vacancy rate was down slightly over the previous quarter, with net absorption totaling positive 357,111 square feet in the second quarter. That compares to negative 1,012,504 square feet in the first quarter 2013. Vacant sublease space decreased in the quarter, ending the quarter at 1,606,403 square feet.
Tenants moving into large blocks of space in 2013 include: PricewaterhouseCoopers LLP moving into 133,363 square feet at Figueroa at Wilshire; HULU moving into 95,113 square feet at Colorado Center - Bldg F; and Westfield moving into 81,124 square feet at Century Plaza Towers - South Tower.
Rental rates ended the second quarter at $27.85, no change over the previous quarter.
A total of six buildings delivered to the market in the quarter totaling 142,857 square feet, with 1,298,932 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 11.7% from the previous quarter, with net absorption positive 21.27 million square feet in the second quarter. Average rental rates increased to $21.60, and 219 buildings delivered to the market totaling more than 10.25 million square feet.
The information in this news report is based on CoStar’s Second 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.