In weak Los Angeles office market, medical offices maintain an edge

Medical office vacancy rates have remained stable over the past decade, shielded from the headwinds facing the traditional office market. Vacancy for medical office has remained within a 2.3% spread, while traditional office vacancies have shown greater volatility, reaching highs of 16-17% and a spread of 7.4%. However, despite medical office vacancy not exhibiting the large quarter-over-quarter increases traditional office has been experiencing, medical office vacancy has crept up to 8.6%, a decade high, driven primarily by multistory medical office vacancy. Multistory vacancy ended the quarter at 10.1%, compared to 5.3% for single-story buildings.