Here’s an overview of real estate activity in Los Angeles County in the fourth quarter, broken down in three categories:
Don’t call it a comeback, but the Los Angeles County office market posted strong gains in the fourth quarter of 2015 after a slight stumble during the previous period.
More than 1.4 million square feet of office space was leased up throughout the county last quarter, helping to drive the vacancy rate down to 15 percent, according to downtown L.A. real estate giant CBRE Group Inc.
“The decline is a positive sign after a slight uptick in the vacancy rate in (the third quarter),” CBRE research analysts Jill Luna and Maximilian Saia wrote in a recent report.
Indeed, the market absorbed way more than the 75,197 square feet that was added during the third quarter – which broke a seven-quarter streak of positive absorption.
In fact, New York marketing giant Interpublic Group of Cos. Inc. more than made up for the entire county’s loss in the third quarter when it signed off on an 11-year deal for 150,000 square feet in November.
The lease, estimated to be worth more than $70 million, was signed at the Plaza in Century City, at 1800 and 1840 Century Park East.
IPG, a publicly traded holding company, further illustrates the strong demand for office space in the Westside submarket, where the vacancy rate fell to 11.8 percent in the fourth quarter, according to CBRE.
Considering the flurry of recent activity on the Westside, it should come as no surprise that submarket absorbed the most space – 710,511 square feet – last quarter.
Though it was nowhere close to matching Westside’s heat, downtown Los Angeles continued to be another bright spot in the overall L.A. office market. Even though the vacancy rate there – 17.6 percent – remained higher than the overall market, it absorbed nearly 52,000 square feet in the fourth quarter.
Downtown law firm Munger Tolles & Olson, co-founded by L.A. billionaire Charlie Munger in 1962, played a key role in the quarter when it leased 152,306 square feet, according to CBRE.
Brad Brian, the firm’s co-managing partner, told the Business Journal last month that the move to 2 Cal at 350 S. Grand Ave. is scheduled for early next year. Its 375 employees will take up more than five floors there after it moves out of its current post at 355 S. Grand.
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