The market’s overall 790,718 sq. ft. of positive quarterly net absorption was strengthened by tech and media tenants that occupied large blocks in Downtown, Hollywood, Burbank and Playa Vista. Subleases accounted for positive 235,916 sq. ft. of net absorption.
The overall GLA asking lease rate increased to $3.42 per sq. ft. per month, up 7% year over year, supported by lower overall vacancy, a strong labor market, and pre-leasing at some of the area’s office projects under construction.
There were 3.0 million sq. ft. of office space under construction in GLA as projects broke ground in Pasadena and Playa Vista.
Despite a plentiful supply of private capital, rising interest rates impacted the cost of debt, which in turn influenced private capital and institutional investors.