Greater Los Angeles Medical Office Figures Q4 2023

Overview

Greater Los Angeles (GLA) vacancy increased by 30 basis points due to continued tenant consolidation, however, the market remained relatively flat towards the end of the year.

Average asking rates decreased by $0.02 quarter-over-quarter but reported an increase of $0.05 year-over-year.

Greater Los Angeles reported slight net absorption driven by new availabilities in the San Gabriel Valley and South Bay.

The total availability rate decreased by 40 basis points quarter-over-quarter, marking the fourth consecutive quarterly decrease in available space.

The U.S. Healthcare REIT Index continued to hold the greatest market share across all asset classes which helped stabilize the overall market amidst heightened interest rates.

Total sales volume declined 5.38% quarter-over-quarter to $27.4 million. Year-to-date, MOB assets traded 82% lower through the same period in 2022.