Fast-growing Warner Center in Woodland Hills will soon surpass Encino as the West San Fernando Valley's biggest market for office space, according to a report by a local commercial brokerage firm.
The study by the Sherman Oaks office of Beitler Commercial Realty Services also found that the office vacancy rate in the area bounded by Encino on the east, Calabasas on the west, Chatsworth on the north and Ventura Boulevard on the south is 11%.
But when all the buildings under construction in that area are factored into the analysis, the vacancy rate is 18%.
The report said the 3,492,000 square feet of office space in Encino currently makes it the largest office market in the West Valley. However, Warner Center will take over the No. 1 spot with 3,689,480 square feet when three large projects--Warner Corporate Center, Warner Center Plaza III and the second phase of The Trillium--are completed in the next several months.
"Construction has virtually stopped in Encino, where land for new development is nearly non-existent," said John Battle, a Beitler principal.
Monthly office-rental rates in the West Valley range from $1.25 to $2.50 a square foot, the report said, with Encino and Warner Center commanding the top prices because of their prime locations and better freeway access.