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Downtown Office Market Bouncing Back

LOS ANGELES-The Downtown office market's vacancy level decreased by 1.28% in the first quarter, and now leads the county with a net absorption of 285,896 sf, according to a new report by LA-based Cushman Realty Corp.

By Erin Cassin | Updated on April 08, 2001

LOS ANGELES-Since Downtown revitalization efforts kicked into high gear, businesses began flocking to the area, and now the Downtown Los Angeles office market is leading the county with a net absorption of 385,896 sf in the first quarter, according to a recent report published by locally based Cushman Realty Corp.

The San Fernando Valley had a net absorption of 1,546 sf in the first quarter, while both the Tri-Cities area and West LA experienced negative net absorption of 400,368 sf and 1.1 million sf, respectively.

“Downtown LA has bucked the regional trend with two consecutive quarters of net absorption,” says Mitchell F. Russ, the manager of real estate services for Cushman Realty Corp.’s Los Angeles office. “Ironically, a deceleration in the regional economy may benefit Downtown LA, as companies refocus on facility strategies that aggressively minimize occupancy costs. Also, current bargain rental rates for class A properties are driving the CBD recovery.”

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