NAI Capital is the largest independently owned full service commercial real estate firm headquartered in Southern California. As one of the largest members of NAI Global, the premier managed commercial real estate service network with 400 Offices and 7,000 market leaders spanning the globe, NAI Capital provides a complete range of transaction, valuation, investment, property management and consulting services.

News

Short-Term Draw

We hear a lot that this is a landlord’s office market, but tenants might have more bargaining power than they think to combat rising rents. According to research from NAI Capital, there is currently more than 5 million square feet of sublease space on the market—including more than 1 million square feet of sublease space on the Westside. The sublease supply paired with a double-digit vacancy rate is giving tenants a strong bargaining chip both when renegotiating leases and when looking for new space....

Media & Tech Drive Demand for Office Space

The average asking rent in the Silicon Beach office market dropped in 1Q 2019 after a record-setting 2018. Asking rents declined 1.0% to $4.74 per square foot, down from the peak last quarter. Still, the average rent remains 1.5% above 2018 and is slightly down from the highest levels on record. Over the previous quarter, the vacancy rate inched up 30 basis points - 10.5%....

Is It Really a Landlord’s Office Market?

We hear a lot that this is a landlord’s office market, but tenants might have more bargaining power than they think to combat rising rents. According to research from NAI Capital, there is currently more than 5 million square feet of sublease space on the market—including more than 1 million square feet of sublease space on the Westside. The sublease supply paired with a double-digit vacancy rate is giving tenants a strong bargaining chip both when renegotiating leases and when looking for new space....

Limited Office Ownership Has Helped DTLA

The office market in Downtown Los Angeles in somewhat of a dichotomy. It has one of the highest vacancy rates in the Greater Los Angeles area, but rents that can rival West L.A. There are a few reasons for this. Among them are expensive pricing as a result of the redevelopment activity that creates higher proforma rents as well as the abundant confidence in the Downtown Los Angeles market. Another, however, could be the limited office ownership in the market. Much of the office stock is owned by a handful of large office owners, and they are able to keep rents up despite the vacancy longer than they might be able to if there were more competition....