Greater Los Angeles

CBRE’s latest national insight found that conversions may refuel urban economies that continue to suffer from reduced demand for office space, primarily older and obsolete building

The electric vehicle market is soaring in Southern California. The light-duty zero-emission vehicle (ZEV) population increased by 397% in Los Angeles County from 2017 to 2022. This

Ongoing negative economic pressure weakens GLA office fundamentals

Greater Los Angeles (GLA) posted -2.3M sq. ft. of net absorption as logistics processes are refined and excess space is shed to optimize performance.
Port labor negotiations headed towards their end in a positive note for future market demand.
GLA average asking lease rates decreased from $1.53 NNN per sq. ft. in the second quarter to $1.52 NNN per sq. ft. to close out the third quarter, marking one of the first asking rate decreases since Q2 of 2020.
Vacant space and sublease availabilities continued to apply downward pressure on market pricing due to an increase of functional space at below market pricing.
Sales volume increased to $1.4B in the third quarter, though still below the historic quarterly average transaction volume by 50%, primarily driven by a tight lending market and markedly increased interest rates compared to past years.

Average asking rates held at $3.90 quarter-over-quarter. Notably, the West Los Angeles submarket experienced the most significant increase by 2.5% while the Hollywood/Wilshire Corridor submarket decreased the most by over 20%. More class A spec office space hit the market as either direct vacant and available space or sublease space.