Printer Friendly

SOUTH BAY OFFICE MARKET HAS SLOW THIRD QUARTER, REPORT REVEALS

 SOUTH BAY OFFICE MARKET HAS SLOW THIRD QUARTER, REPORT REVEALS
 ORANGE, Calif., Oct. 29 /PRNewswire/ -- Economic uncertainty coupled with continued downsizing by defense/aerospace firms slowed the South Bay office market in the third quarter of 1992, according to a report released today by Grubb Ellis Commercial Real Estate Services.
 The vacancy rate for South Bay office space stood at 21.1 percent as the third quarter ended, up slightly from the 20.4 percent recorded for the same period a year ago.
 Net absorption for the South Bay as a whole was negative for the third quarter totaling -20,283 square feet, meaning that more space was vacated than was occupied during that time period. That was down from 1991's third quarter absorption of positive 165,306 square feet.
 "Defense firms are continuing to put office space back on the market as they downsize their operations in the South Bay," said Jim Biondi, senior vice president with Grubb & Ellis' South Bay office. "In many cases, they're leaving leased space and moving into facilities they own."
 Year-to-date 8,818 square feet of office space has been absorbed in the South Bay vs. 189,759 square feet during the first nine months of 1991.
 "There are firms taking advantage of today's tenant's market, however, many are waiting for the economy to show signs of improvement before making a move," Biondi said.
 The only office market showing appreciable absorption in the third quarter was Downtown Long Beach, which absorbed 55,843 square feet and recorded a vacancy rate of 26.9 percent.
 LAX/Century Boulevard posted 3,030 square feet of positive absorption in the third quarter and a vacancy rate of 36 percent.
 The South Bay's remaining submarkets posted negative absorption in the third quarter, an indication that more office space was vacated than occupied in those areas during that time period.
 "It's important to recognize that negative absorption doesn't mean an absence of leasing activity," said Biondi. "There are tenants in the market making deals, however, many are making lateral moves or downsizing. As a result, when these tenants move there is no net increase in space occupied, which is what net absorption measures."
 Specific statistics for the South Bay's remaining submarkets are as follows:
 El Segundo/Manhattan Beach had 44,762 square feet of negative absorption and a vacancy rate of 13.9 percent.
 Torrance Freeway had 243 square feet of negative absorption and a vacancy rate of 22 percent.
 Torrance Central had 7,591 square feet of negative absorption and a vacancy rate of 18.9 percent.
 Carson had 17,270 square feet of negative absorption and a vacancy rate of 16.3 percent.
 Long Beach Suburban had 9,290 square feet of negative absorption and a vacancy rate of 20.4 percent.
 New office construction remained at zero in the third quarter in the South Bay. A year ago there were 206,000 square feet of office space under construction in the South Bay.
 -0- 10/29/92
 /CONTACT: Sharon Abar, public relations director of Grubb & Ellis, 714-937-0881/ CO: Grubb & Ellis ST: California IN: SU:


LS-JB -- LA024 -- 6704 10/29/92 15:10 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 29, 1992
Words:527
Previous Article:CEI HOLDS BENEFIT COOKOUT FOR HURRICANE ANDREW VICTIMS
Next Article:N.C. BANKERS ASSOCIATION HOLDS LENDING WORKSHOP
Topics:


Related Articles
ORANGE COUNTY OFFICE MARKET POSTS LOWER VACANCY RATE AND HEALTHY ABSORPTION IN THIRD QUARTER, REPORT REVEALS
Westchester posts moderate gains in first quarter.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters