Absorption of commercial office space in the San Fernando Valley increased to 276,000 square feet during the first quarter of this year, but the vacancy rate rose a point to 20%, according to a survey by Grubb & Ellis Co.
The study showed absorption rising almost 62,000 square feet from the fourth-quarter total, and suggested that although the vacancy rate increased slightly, it will decline through the balance of the year due to continued high absorption and fewer new buildings coming on line.
During the first quarter, 2.9 million in a total of 14.8 million square feet of office space was vacant, compared with 2.6 million in a total of 14.1 million square feet at the end of last year.
"The most noteworthy difference in the fourth and first quarters was absorption," Bob Dalby, vice president and sales manager of Grubb & Ellis' Sherman Oaks office, said. However, he pointed out that only 1.5 million square feet in eight new buildings will be added to the market in 1986, representing only half of what it was last year.