The vacancy rate in 46 primary office buildings in the mid-Wilshire District has risen to 23% from 21% a year earlier, according to a survey conducted by a Los Angeles-based commercial brokerage firm.
Merritt Real Estate Group said a study of the buildings, all located on Wilshire Boulevard between San Vicente Boulevard and Alvarado Street, found that nearly 2.82 million square feet of the 12.15 million square feet of space in the 46 complexes is available.
However, when four new complexes--6500 Wilshire, Metroplex, Wilshire Courtyard and New Wilshire--were excluded from the survey, the vacancy rate was 13%, down eight percentage points from a year ago.
Richard Merritt, executive vice president of Merritt Real Estate Group, predicted that mid-Wilshire's vacancy rate will move even lower. He said many Asian businesses--particularly accounting, legal and insurance firms--are moving into the area or expanding existing offices to support corporate clients located downtown.
Merritt said many firms are relocating to the mid-Wilshire district from other parts of Los Angeles area because rents are lower, parking is easier and there is less congestion.
Merrit Real Estate Group, founded four years ago, has leased more than 1 million square feet of office space in the mid-Wilshire and downtown areas.