LOS ANGELES-Los Angeles employment gains will continue to rise in the fourth quarter and place upward pressure on the office market, according to Jerry Holdner, VP of market research for Voit. Holdner's comments shed a positive light on Voit's mid-quarter report, reviewed last week by GlobeSt.com, which showed employment gains in some sectors were offset by losses in others. Overall, Holdner explains that even with losses, the office market is improving and will continue to improve through the end of the year.

Occupancy rates will continue to increase as they have over the past eight quarters consistent with increases in office-use employment. Although there have been losses in some sectors, like government and aerospace, gains in business services, education and healthcare are continuing to drive occupancy rates up. “The increase in employment will continue to put downward pressure on vacancy and upward pressure on rents,” says Holdner. This year, Voit predicts 34,600 new jobs will be created in the overall Los Angeles market; however, in 2014, Voit predicts job gains will begin to slow with only 28,500 new jobs created.

“The office market in Los Angeles will continue to improve as new companies are created and existing companies expand,” says Holdner. “Currently the vacancy rate stands at 14%, and we predict that vacancy will end the year at 13.6%. In the first half of the third quarter, we have already seen occupancy increase by almost a million square feet.”