Browsing articles from "September, 2012"
Sep 24, 2012
Synergy Blog Admin

Los Angeles Office Rates Still Flat Q3 2012

By John Galaxidas

CEO/President

Synergy Real Estate Group, Corporate Advisory (www.synreg.com)

The Los Angeles Class A office leasing market continues to remain flat in Q3 2012. Office leasing activity (as measured by the total square foot-age of new leases and lease renewals executed) was 34% below average quarterly leasing activity in 2011.

The availability rate for Class A office space continues to hover slightly above 19%, the same rate for the past 2.5 years. To put this in perspective, Los Angeles office rental rates bottomed out at 12% in 2006 and peaked at 19.9% in 2010, average office availability is now flat at 18.9% in 2012.

The only place in Los Angeles where rental rates have decreased slightly is in the Westside where the average asking rates for Westside Class A Office Space is $2.87 per month, 1.40% lower than 12 months ago.

Westside Los Angeles Office Space

Beverly Hills: 137 Locations and Subleases
Sizes: 1,599 Sqft to 105,000 Sqft
Class A Starting at $1.99/Sqft/Month
Class B Starting at $1.95/Sqft/Month

Brentwood: 12 Locations and Subleases
Sizes: 1,697 Sqft to 24,185 Sqft
Class A Starting at $2.00/Sqft/Month
Class B Starting at $1.75/Sqft/Month

Century City: 29 Locations and Subleases
Sizes: 1,764 Sqft to 42,976 Sqft
Class A Starting at $2.00/Sqft/Month

Cheviot Hills: 45 Locations and Subleases
Sizes: 1,734 Sqft to 26,826 Sqft
Class A Starting at $2.30/Sqft/Month
Class B Starting at $1.65/Sqft/Month

Culver City: 69 Locations and Subleases
Sizes: 1,975 Sqft to 156,371 Sqft
Class A Starting at $1.75/Sqft/Month
Class B Starting at $1.65/Sqft/Month

Malibu: 8 Locations and Subleases
Sizes: 1,700 Sqft to 18,000 Sqft
Class A Starting at $3.25/Sqft/Month
Class B Starting at $3.10/Sqft/Month

Mar Vista: 12 Locations and Subleases
Sizes: 1,917 Sqft to 15,214 Sqft
Class A Starting at $2.25/Sqft/Month
Class B Starting at $1.61/Sqft/Month

Marina Del Rey: 28 Locations and Subleases
Sizes: 1,800 Sqft to 33,653 Sqft
Class A Starting at $2.10/Sqft/Month
Class B Starting at $1.69/Sqft/Month

Palms: 20 Locations and Subleases
Sizes: 2,000 Sqft to 17,581 Sqft
Class A Starting at $1.95/Sqft/Month
Class B Starting at $1.40/Sqft/Month

Pico Robertson: 15 Locations and Subleases
Sizes: 1,680 Sqft to 19,932 Sqft
Class A Starting at $2.10/Sqft/Month
Class B Starting at $1.65/Sqft/Month

Santa Monica: 94 Locations and Subleases
Sizes: 1,845 Sqft to 95,113 Sqft
Class A Starting at $1.95/Sqft/Month
Class B Starting at $1.30/Sqft/Month

Sawtelle: 39 Locations and Subleases
Sizes: 1,935 Sqft to 54,000 Sqft
Class A Starting at $2.21/Sqft/Month
Class B Starting at $1.90/Sqft/Month

Venice: 27 Locations and Subleases
Sizes: 1,900 Sqft to 16,000 Sqft
Class A Starting at $2.75/Sqft/Month
Class B Starting at $2.59/Sqft/Month

West Los Angeles: 83 Locations and Subleases
Sizes: 1,800 Sqft to 35,304 Sqft
Class A Starting at $1.50/Sqft/Month
Class B Starting at $1.50/Sqft/Month

Westwood: 24 Locations and Subleases
Sizes: 1,713 Sqft to 51,972 Sqft
Class A Starting at $1.95/Sqft/Month
Class B Starting at $1.75/Sqft/Month

Downtown Los Angeles asking rates have increased 5% over the past four quarters. The average asking rates for all submarkets have remained relatively flat for the past 10 quarters after falling off from a high of $3.01 in 2008.

Downtown Los Angeles Office Space

Fashion District: 10 Locations and Subleases
Sizes: 1,750 Sqft to 133,700 Sqft
Class B Starting at $0.85/Sqft/Month

Little Tokyo: 1 Location and Subleases
Sizes: 3,000 Sqft to 28,000 Sqft
Class B Starting at $0.60/Sqft/Month

LA CBD – Financial District: 97 Locations and Subleases
Sizes: 1,808 Sqft to 481,395Sqft
Class A Starting at $1.50/Sqft/Month
Class B Starting at $1.25/Sqft/Month

South Park: 29 Locations and Subleases
Sizes: 2,000 Sqft to 48,964 Sqft
Class A Starting at $1.59/Sqft/Month
Class B Starting at $1.25/Sqft/Month

Warehouse – Wholesale District: 12 Locations and Subleases
Sizes: 3,449 Sqft to 71,446 Sqft
Class A Starting at $2.25/Sqft/Month
Class B Starting at $1.10/Sqft/Month

The remainder of Los Angeles submarkets is at or experienced a slight increase in availability. Average asking rates for Class A space across Los Angeles submarkets increased to $2.69 per month, 2.3% higher than 12 months ago.

“Los Angeles rental rates will not always stay flat, they will likely increase in the coming years,” said John Galaxidas, CEO/President of Synergy Real Estate Group, Corporate Advisory, the largest network of Independent Tenant Advisors in North America with offices in Downtown Los Angeles, Inland Empire, Irvine and San Diego. “Now is an opportune time to renew your lease securing a lower rental rate or relocate to higher quality, more cost effective space,” said Galaxidas

With a Tenant Broker you can feel confident that you are being presented every possible opportunity in the market while securing the lowest price possible on space, a virtue that tenant advisors at Synergy Real Estate Group prides themselves on providing to their clients.

No Cost for our Service

The best part using a Tenant Rep is there is no cost associated with our service. Tenant Brokers get compensated only when the deal closes. The listing agent who represents the Property Owner splits the commission with the Tenant Broker when the deal is consummated.

Uncover “Off-Market” Opportunities

Not only do we have access to every commercial listing in the market, we inventory the market on a weekly basis, “uncovering “off-market” opportunities.

When it comes to negotiating a lease or purchase contract, we will put out proposals on your behalf leveraging, one Landlord against the other to secure the best terms and rate on space.

Tenant representatives are becoming more valuable than ever. With the upturn in the Los Angeles market, as the economy rebounds and demand increases, businesses need to be strategic in the negotiation process.

If you are seeking assistance relocating, acquiring, disposing, subleasing and/or renegotiating your next space, contact Synergy Real Estate Group at: 323-776-3344 or visit our web site at: www.LosAngelesOfficeSpace.net.