Office vacancy rates in downtown's central business district dropped slightly in the first quarter this year, while vacancy rates across most of the nation rose, according to a commercial brokerage firm report.
Cushman & Wakefield of California Inc. said vacancies in downtown Los Angeles dropped to 14% in the first quarter from 14.2% in the previous quarter, as leasing activity remained strong and no new buildings were added to the area's 21.2 million square feet of space.
The downtown market should continue to drop in the months ahead, as little new space becomes available, said Dave McKenney, a Cushman & Wakefield executive.
First-quarter vacancy rates dropped to 31.5% in Ontario, 23.5% in the South Bay and 20.2% in the San Fernando Valley, the report said. Nationwide, vacancies rose to 15.1% from 13.8%, as economic uncertainty and lagging demand in major financial centers hurt leasing activity.