Los Angeles continues to be a premium destination for businesses with its laid-back atmosphere, year-long sunny weather, and a stable supply of labor force with one million students graduating yearly. That’s bound to have a significant impact on the local economy.
When you say office space Los Angeles, you’re actually referring to an expansive zone from the Pacific Ocean to Ventura County in the north, San Gabriel Valley in the east, and South Bay.
All in all, there are more than 215 million square feet of office space in LA County, with hundreds of thousands of square feet are being constructed annually. Of the more than 200 million square feet of office space, just 15% is concentrated downtown. It might seem like a small number, but that still translates to 32 million square feet or almost half the total commercial space in San Francisco.
Each district has its own identity, culture, pace, and demographic. Choosing the right location is crucial to the success of your business.
Just to give an example, here are the average rates of office space in Los Angeles:
- Downtown Central Business District. About $3.50 to $4 per square foot. As already mentioned, there are 32 million square feet of office space downtown, but the vacancy rate is around 20%.
- Westside. Located in Southern California, this is where you will find celebrities and posh mansions, as well as beautiful beaches. Naturally, housing prices and office rents are higher compared to Downtown. You are looking at $4.70 to $5.00 per square foot. There are four million square feet in office space here with a 12% vacancy rate.
- Tri-Cities. The Tri-Cities area, which refers to Glendale, Pasadena, and Burbank, is a burgeoning hub for office space in Los Angeles County. This has been true in recent years. Accordingly, the Tri-Cities area has the steepest decline in the vacancy rate for office space. Right now, the average rent here is $3.10 to $3.50 per square foot. There are 25 million square feet in inventory with a 14% vacancy rate.
- South LA. Located just south of Downtown, the neighborhood is attractive considering its proximity to the central business district. A lot of people prefer to live here because it lies just 20 minutes from the Staples Center. With a growing population, businesses are bound to follow. Right now, the cost of office space in South LA is $2.80 per square foot. There are 31 million square feet of office space on inventory with a 17% vacancy rate.
- Mid-Wilshire. Located in Central LA, Mid-Wilshire covers Little Ethiopia, Park La Brea, Miracle Mile, Wilshire Vista, and Park Mile neighborhoods. The price per square foot here is $2.70, with an inventory of four million square feet of office space and a vacancy rate of 15%.
As you can see, the rate of office space lease in Los Angeles will depend on the location. Information and referral networks like Office Finder can help you locate the ideal location for your business based on your budget, wishlist, and target demographic.