L.A. story: Office investment in Southern California
If one of the most expensive cities for commercial office investing can still see solid economic growth, anywhere can. The Greater Los Angeles office market continues to see unstoppable economic growth, according to Colliers International’s second quarter 2016 Greater Los Angeles Office research and forecast report. The area recorded positive net absorption for the ninth consecutive quarter, at 687,200 square feet.
Office vacancy rates fell slightly to 14.9 percent and are forecast to remain steady during upcoming quarters. Asking rental rates continue to increase at a quarterly average of 1.6 percent. And the second quarter posted overall full-service gross rental rates of $2.74 per square foot.
Unemployment rates have declined from 6.3 percent to 4.4 percent year-over-year, according to Colliers, and CBRE Econometric Advisors forecasts office-using employment will expand 2.6 percent in Los Angeles County during the next year.
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