83.9 F
San Fernando
Thursday, Apr 25, 2024

Valley Office Sector Shows Q2 Rebound

Second quarter statistics from the San Fernando Valley’s office market look encouraging.“We’re definitely better off today than we were a year ago,” said Mike Soto, director of research for Savills, a real estate data company based in downtown Los Angeles.Savills has just released its second-quarter 2021 Los Angeles Office Report, which examines availability during April through June. The quarter turned out to be much more solid than the last few quarters preceding it when the nation was in the midst of an unpredictable coronavirus epidemic.“We’re now really starting to see big deals coming back,” said Soto, whose report covers all of greater Los Angeles.In greater Los Angeles, overall average asking rents in the quarter registered at $3.84, up 5.7 percent from a year ago. Among the North Los Angeles submarkets, Burbank topped the rental rates with $3.80 per square foot, followed by the North Hollywood/Studio City/Universal City, which saw $3.56 per square foot while Glendale posted $3.09. Central San Ferrnando Valley commanded $2.84 per square foot compared to the West Valley’s $2.48; and Santa Clarita saw a $2.64 per square foot asking price.Toward the end of quarter on June 15, Gov. Gavin Newsom gave the go-ahead for indoor and outdoor business to resume sans masks and distancing.“Because the economy has reopened, companies want to get back into the office,”’ Soto said, thus driving office leases.In North L.A., Soto said that Burbank is the best office market not only in the Valley but in all of greater Los Angeles. While in L.A. County, office availability stood at 24.1 percent, Burbank only posted an 8.8 percent vacancy.“Media, tech, entertainment markets will accelerate us out of (an ailing economy),” Soto said, noting that places such as the home of Walt Disney Co. and Warner Bros. Studios – as well as neighboring North Hollywood, Studio City and Sherman Oaks – stand to benefit the most.Less resilient are Woodland Hills, Encino and Glendale, where more traditional firms – insurance, finance, law — dominate. In contrast to Burbank, immediate neighbor Glendale, a community well saturated with old-school markets such as insurance, saw a staggering 24.8 percent vacancy while downtown L.A., at 28 percent, has “a lot of nervous landlords,” Soto said.

Michael Aushenker
Michael Aushenker
A graduate of Cornell University, Michael covers commercial real estate for the San Fernando Valley Business Journal. Prior to the Business Journal, Michael covered the community and entertainment beats as a staff writer for various newspapers, including the Jewish Journal of Greater Los Angeles, The Palisadian-Post, The Argonaut and Acorn Newspapers. He has also freelanced for the Santa Barbara Independent, VC Reporter, Malibu Times and Los Feliz Ledger.

Featured Articles

Related Articles