Vacancy rates in the San Gabriel Valley
At the conclusion of the fourth quarter of 2005, the San Gabriel Valley posted the lowest vacancy rate in Los Angeles County at 5.9%.
“The Los Angels County office market continued to experience positive trends in the fourth quarter of 2005, including decreased vacancy, increased asking rates and increased net absorption.” CBRE MarketView Newsletter, Fourth Quarter.
Sub-market
|
Net Rentable Area SF |
Vacancy Rate % |
Net Absorption SF |
Under Construction SF |
Average Asking Lease Rate S/SF/MTH |
Tri-Cities/Glendale
|
24,596,212 |
7.3% |
654,706 |
192,137 |
$2.46 |
Downtown Los Angeles
|
30,944,417 |
14.6% |
(69,730) |
- |
$2.42 |
Hollywood/Wilshire Corridor
|
17,194,280 |
10.5% |
(77,544) |
- |
$1.84 |
San Fernando Valley
|
22,291,618 |
8.1% |
216,804 |
30,138 |
$2.22 |
San Gabriel Valley |
12,605,932 |
5.9% |
230,418 |
49,100 |
$1.97 |
South Bay
|
27,116,801 |
16.5% |
517,520 |
- |
$1.83 |
West Los Angeles
|
42,392,573 |
8.9% |
393,541 |
830,708 |
$2.85 |
Los Angeles County Total
|
177,141,833 |
10.7% |
1,865,715 |
1,102,083 |
$2.27 |
Ventura
|
8,597,286 |
8.7% |
138,055 |
104,014 |
$1.85 |
Greater Los Angeles Area Total
|
185,739,119 |
10.6% |
2,003,770 |
1,206,097 |
$2.25 |
Vacancy rates in Los Angeles County during the fourth quarter 2005 break down as follows:
• Class A: 10.4%
• Class B: 11.7%
• Class C: 10.7%
Overall, the San Gabriel Valley has the lowest combined vacancy at 5.9% |
Average asking rates in Los Angeles County during the fourth quarter of 2005 break down as follows:
• Class A: $2.41 per SF
• Class B: $1.84 per SF
• Class C: $2.27 per SF |
Construction activity in Los Angeles County declined in the final quarter of 2005 to 1.1 million SF from 1.6 million SF in the second and third quarters. |
Net absorption in Los Angeles County during the fourth quarter breaks down as follows:
• Class A: 1,074,088 SF
• Class B: 791,627 SF
• Class C: 1,865,715 SF |
Office Owner / Investor large markey rating
FORECAST |
DOWNTOWN MARKETS 2005-2008 RENT GROWTH |
2008 VACANCY |
SUBURBAN MARKETS 2005-2008 RENT GROWTH |
2008 VACANCY |
Atlanta |
Flat/Small Increase |
16.0% |
Moderate Increase |
12.5% |
Chicago |
Flat/Small Decline |
15.2% |
Flat/Small Increase |
15.8% |
Dallas |
Moderate Decline |
29.1% |
Moderate Decline |
20.5% |
Denver |
Inflationary Increase |
12.5% |
Inflationary Increase |
14.8% |
Houston |
Flat/Small Decline |
15.0% |
Flat/Small Increase |
13.8% |
Los Angeles |
Moderate Increase |
11.6% |
Strong Increase |
9.3% |
New York |
Rent Spikes |
6.5% |
– |
– |
Northern New Jersey |
– |
– |
Inflationary Increase |
13.6% |
Philadelphia |
Inflationary Increase |
11.2% |
Flat/Small Decline |
15.7% |
San Francisco |
Rent Spikes |
5.6% |
Inflationary Increase |
14.0% |
Washington |
Strong Increase |
6.2% |
Strong Increase |
9.3% |
Los Angeles Space Statistics
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NET ABSORPTION |
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SUPPLY FACTORS |
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YEAR-END
2004
VACANCIES |
YEAR-TO-DATE
COMPLETIONS
|
CURRENT
QUARTER |
YEAR-TO-DATE |
YEAR-TO-DATE
% OF STOCK |
END OF
QUARTER STOCK |
END OF
QUARTER
VACANCY % |
END OF QUARTER
VACANCY %
(INCL. SUBLEASES) |
2006
ESTIMATED
COMPLETIONS |
2007
ESTIMATED
COMPLETIONS |
CBD |
|
|
|
|
|
|
|
|
|
|
Bunker Hill
|
6.84% |
0 |
59,763 |
-69,703 |
-0.56% |
12,480,579 |
7.40% |
9.95% |
0 |
0 |
Central Business District
|
28.39% |
0 |
19,937 |
858,018 |
7.34% |
11,692,832 |
21.05% |
22.93% |
0 |
0 |
South Park
|
17.93% |
0 |
-84,791 |
939,495 |
11.40% |
8,243,736 |
6.54% |
7.70% |
0 |
0 |
CBD Market Totals
|
17.44% |
0 |
-5,091 |
1,727,810 |
5.33% |
32,417,147 |
12.11% |
14.06% |
0 |
0 |
|