Class A options become more limited with continued flight to quality
Overall availability in greater Los Angeles is holding at 18.6% — flat over the quarter and down just 20 basis points over the year. Class A availability saw more tightening, declining 30 basis points quarter over quarter and 90 basis points year over year to 17.5%. The demand for low- to mid-rise creative office campus layouts remains steady among technology, advertising, media and information (TAMI) sector tenants, while classic industries such as legal services and finance and insurance are opting for traditional Class A high-rises. Construction activity throughout the region remains active with 4.0 million square feet (msf) currently underway, 52.0% of which is already preleased.