On the development front, residential and mixed-use projects continued to perform well as the Los Angeles County Metropolitan Transportation Authority line inches closer to becoming a reality.
“That story continues in this submarket,” said Lee Shapiro, executive vice president for Kennedy Wilson’s brokerage group. “We’re now seeing services coming in behind the retail.”
Performance in Wilshire Center and Park Mile remained virtually unchanged, with little activity in the opening quarter. But a wave of conversions is rolling through Wilshire Center as Jamison Services Inc. continues to convert office buildings to apartments.
“This started with two buildings at 3075 Wilshire and 3350 Wilshire, but there are as many as six more buildings slated to be converted over the next 24 months,” said Chris Runyen, senior managing director for Charles Dunn Co. Inc. “This would reduce the inventory of office buildings in the Wilshire Center market by over 1 million square feet – approximately 20 percent – or virtually all of the vacancy in the market.”
For the Wilshire Corridor overall, vacancy remained relatively high at 19.6 percent, down slightly from 19.9 percent at year’s end. Average asking rates rose to $2.48 per square foot from $2.40 in the prior period, according to data provided by Jones Lang LaSalle.
– Margot Carmichael Lester
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