Southern California Construction Update: Office

Employment in office-occupying sectors often drives demand for office space. Employment in tech and related industries is driving demand and rental growth in Los Angeles and Orange County. Office asking rents tend to be highest in areas favored by tech tenants, including the Westside and Silicon Beach in Los Angeles and Anaheim's Platinum Triangle. In the Inland Empire and Ventura County, healthcare is a leading driver of the office market. A significant portion of new construction in these regions is medical office space.

For additional construction information please see the office construction reports available on our website. 

 The Boardwalk, a 545K SF office building in Irvine, was the largest delivery in 2017.

The Boardwalk, a 545K SF office building in Irvine, was the largest delivery in 2017.

Space Under Construction

  • Southern California: 6.9M SF

    • Los Angeles County: 5.1M SF
    • Orange County: 1.5M SF
    • Inland Empire: 261K SF
    • Ventura County: 25K SF

2017 Delivery Volume

  • Southern California: 4.7M SF

    • Los Angeles County: 2.5M SF
    • Orange County: 2.1M SF
    • Inland Empire: 73K SF
    • Ventura County: 0 SF
 

Southern California Office Construction by Region

Source: NAI Capital Research, CoStar
 

Select Office Projects Under Construction

California Broadway Trade Center is currently the largest office project under way in Los Angeles. Developer Waterbridge Capital is redeveloping the 1.1 million square foot building in Downtown Los Angeles into mixed-use with ground-floor retail, 500,000 square feet of creative office space, a 71,200 square foot rooftop deck, a hotel, and a private club. The project is expected to deliver in February of 2019.

Rady Children’s Medical Plaza is currently the largest office medical building under construction in the Inland Empire. The 60,000 SF project is owned by Rady Children’s Hospital San Diego and is scheduled to deliver in June 2018.

The Flight at Tustin Legacy in Tustin is a 457,012 SF class A office campus being developed by Lincoln Property Company. The creative campus is the first phase of a much larger development situated on the 1,600 acre former Marine Corps Air Station in Tustin. The project is expected to deliver in July 2018.

1100 W Gonzales Rd is a 25,000 SF class B office medical building currently under construction in Oxnard. The project is being developed by the Santa Jaime L Family Trust and is scheduled for delivery in April 2018.

 

Looking for additional information? Our research page has construction reports for all property types as well as quarterly Market Outlook reports.