Overall availability holds steady; Class A sees decline in large-block options
Overall availability in the greater Los Angeles office market declined for the second straight quarter, ending Q2 at 18.7% — yet remains just 10 basis points below where it was one year ago. The decline in Class A availability was more pronounced, decreasing 120 basis points over the same period with a persistent flight to quality. Options remain challenging for tenants looking for large blocks of contiguous space. Asking rents are increasing in response to a tightening in demand – particularly among new and top-tier space. Class A asking rents increased by 8.9% year over year to $3.68 per square foot (psf) per month, while overall asking rents ticked up 7.6% over the same period to end Q2 at $3.42 psf per month.