The average office asking rent in Los Angeles County continued to break records in 2018. In 4Q 2018, the average asking rent reached $3.20/SF, which represented a 1.9% increase over the prior quarter and a 3.6% increase over 4Q 2017. Average asking rent was up 15.9% from the prior peak reached in 2008. In West LA, one of Los Angeles County’s hottest office submarkets, the average asking rent reached $4.29/SF—the highest on record. The office vacancy rate in Los Angeles County registered at 10.5% in 4Q 2018, one of the lowest vacancy rates on record since 2008. A strong economy and low unemployment drives growth in the office market. Though the rate of employment growth is moderating, the Los Angeles County Office Market is expected to remain tight, with low vacancy and steady rents going into 2019.
Stay tuned for our 4Q18 Quarterly Outlook reports coming soon.