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Office Rents See Run Up in 2016

LOS ANGELES—Despite a relatively high vacancy rate, office rents have increased significantly this year. In this interview, Brad Feld of NKGF tells us why.

By Kelsi Maree Borland | kelsimareeborland | Updated on December 06, 2016

Brad Feld Brad Feld is a vice chairman at Newmark Grubb Knight Frank.

LOS ANGELES—Office rents have risen steadily since the third quarter 2012. In fact, through the third quarter of this year alone, office rents have increased 7% in some Los Angeles submarkets, while the city’s overall vacancy rate hovers at 14%. Silicon Beach, which include the Westside, Culver City, Santa Monica, Playa Vista, Marina del Rey and Venice, continues to command the most demand from tenants. It is also the market flooded with creative office supply, which is the office product that commands the highest rents. Hollywood has also become a vibrant office market with strong rent growth and tenant demand.

Rents are expected to continue to increase next year, and with it, investor appetite for office assets will remain strong. To find out more about the significant rent growth in the L.A. market and how it is helping to fuel activity, we sat down with Brad Feld, vice chairman at Newmark Grubb Knight Frank, for an exclusive interview.

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