L.A. Office Recovery Kicked Down the Road
California Real Estate Journal
By Keeley Webster
... There may not be another high-rise office development planned in the West Los Angeles submarket, but 1.5 million square feet of office space, located mainly south of the traditional Westside market and the North San Fernando Valley, is under construction, according to the 2009 University of Southern California's Casden Industrial and Office forecast...
... The shift to a tenants' market in Los Angeles became apparent in the fourth quarter of 2007 when net absorption turned negative for the first time in four years, according to the Casden Forecast. During 2009, net absorption was a negative 777,000 square feet in the third quarter alone, the forecast stated. As vacancy rates increased in Los Angeles, asking rents for Class A decreased by 12.3 percent from $3.49 per square foot in third-quarter 2008 to $3.06 in third-quarter 2009, according to the USC forecast...