Study: LA Office Market to Improve with Age

LOS ANGELES-A new report by the respected Delta Associates research and consulting firm says office vacancy rates here will be even lower two years from now than they are today, thanks to LA County’s strong job-creation rate and a sharp cutback in the number of new development projects.

The report forecasts that LA’s office vacancy rate will stand at about 11.7% in mid-2003, down from today’s 12.2%. Importantly, Delta’s figures take into account the amount of sublet space that is available now and will likely become available over the next two years.

“Without the sublet space, we’re probably looking at a vacancy factor of just 10% to 11% in the summer of 2003,” Tong Saetia, a Delta Associates VP and research director for its Western Region, tells GlobeSt.com. “That’s a pretty healthy figure.”