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SoCal Sectors To Improve in Second Half

NEWPORT BEACH, CA-While the first half of the year has seen relatively flat to decreasing leasing activity in the region, strong projected job growth is expected to have a positive impact in the second half, reports CBRE.

By Carrie Rossenfeld | Updated on June 28, 2013

NEWPORT BEACH, CA-Steady as she goes seems to be the trend for office occupancy in Greater Los Angeles, Orange County and the Inland Empire during the first half of 2013, while industrial levels varied across the region, particularly in the second quarter, reports CBRE Research. In fact, industrial activity in Los Angeles County fell in the first half of the year as compared to 2012, a trend that can be partially attributed to low inventory levels leaving fewer options for tenants.

In Orange County, office-market fundamentals remain healthy in terms of low vacancy and steady lease rates. On average, more tenants are growing and leasing space rather than downsizing and vacating space, the firm reports. For L.A., however, overall asking lease rates flattened in the first half of the year but are expected to increase gradually over the next 18 months. The majority of tenant activity is occurring in class-A properties as companies continue to take advantage of favorable market conditions.

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