The Los Angeles Metro office market saw a slowing of the pain with a 580,000 square foot decrease in net absorption in the second quarter, compared to the 1.2 million square feet last quarter. Further, average rents ticked higher, increasing from $3.84 per square foot last quarter to $3.86 per square foot this quarter. Most submarket rates saw less than a one percent change to the positive or negative. Submarkets with notable changes were Downtown LA and San Fernando Valley with 4 percent rate increases, while West Los Angeles rates dropped 3 percent.
Notable vacancy changes were seen within West Los Angeles/Tri-Cities/DTLA experiencing between 200,000 and 400,000 square feet increases in vacancy while Wilshire district saw 400,000 square feet get absorbed this quarter. Overall, the 12-month negative net absorption has continued to increase, totaling 4.5 million square feet.
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