The office market in Los Angeles is witnessing a steady resurgence that is benefiting landlords. The overall Los Angeles vacancy rate dropped to less than a percentage point while monthly rents increased five cents per square foot.

The rental market for offices steadied in the aftermath of the recession, but growth in this sector has not reached the levels of past economic recovery periods. However, current vacancy rates have reached their lowest point since 2008. The first quarter of 2014 just came to a close, and the vacancy rate in the counties of Los Angeles, Orange, Riverside, and San Bernardino has dipped to 17.3 percent from 17.9 percent one year earlier. Landlords are now asking $2.36 per square foot in rents, which highlight the 5 cent increase.

Los Angeles has shown promising gains in occupancy for office space, but it is behind other markets, such as New York. Orange County had two big vacancies recently – Fisker Automotive and AT&T left their buildings – pushing the vacancy rate for this region to 15.4 percent. The housing market is improving in Orange county which is causing a turnaround for local mortgage and financial services companies, as well.

Source: http://www.latimes.com/business/realestate/la-fi-office-report-20140420,0,2807796.story#axzz2zXgkvV1P