The market’s overall 1.1 million sq. ft. of positive net absorption year to date already exceeded 2017’s annual total and this quarter was the biggest in the region since Q4 2016.
Overall asking lease rates increased to $3.38 per sq. ft. per month, up 9% year over year.
There were 2.7 million sq. ft. of office space under construction in GLA and 566,170 sq. ft. completed year to date. Approximately 78% of new office construction is in West LA and Hollywood/Wilshire Corridor.
The five largest deals in West LA were signed in Santa Monica by large media companies and corporate tenants. They included a new lease by Tennis Channel along with renewals by Macerich and Cornerstone OnDemand. Asking lease rates in Santa Monica hovered at $6.00 per sq. ft. per month, although the area’s vacancy rate increased to 11.1% compared with 9.7% in Q1 2018 due to several media tenant move outs.