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Monday, October 17, 2011

SoCal: LA Office Vacancy Rates increase, Rents Fall

by Calculated Risk on 10/17/2011 05:37:00 PM

From Roger Vincent at the LA Times: Southland office rents, occupancy rates stay low

Overall, Los Angeles County office vacancy rose slightly to 19% from 18.5% in the third quarter last year, according to brokerage Cushman & Wakefield. The average rent landlords asked for was $2.47 a square foot per month, down from $2.56.
This was the first quarter with positive absorption since 2007 in LA. (More tenants moved in than moved out).

This is similar to the Reis report for Q3 that showed the office vacancy rate is mostly moving sideways at a very high level. New office construction has slowed sharply, but the vacancy rate will not decline significantly until employment pick ups.

• The Empire State Manufacturing Survey indicates that conditions for New York manufacturers continued to deteriorate in October.
Industrial Production increased 0.2% in September, Capacity Utilization increased slightly
Residential Remodeling Index at new high in August