LA Office Market Hits Peak
The LA office market may have hit a snag in 2015, but last year made up for it by breaking the record for total sales volume over the past 10 years.
A new study by Yardi Matrix and Commercial Café shows there was a total sales volume of $9.6B last year compared to $6B in 2014 and $4.9B in 2015, GlobeSt reports.
Yardi Matrix senior analyst Chris Nebenzahl attributes the growth last year to industries that rely heavily on office space.
"Growing industries such as financial activities along with education and health services tend to be office-using industries," he said. "The expansion in those sectors helped drive demand for LA office real estate."
The continued growth in DTLA, the Santa Monica-Jefferson Corridor submarkets, and in Glendale and Pasadena also helped contribute to 2016 being such a strong year, according to Nebenzahl.
This year, he expects demand to remain strong based on the growing tech sector and overall strong employment and demographic trends.
