Loralie's 60 Second Review: March 2024

Activity on The Westside

As demand from large office users continued to decelerate, districts accustomed to small and mid-sized occupiers experienced positive quarters. Brentwood and Westwood both saw positive net absorption. Century City sustained momentum as the district witnessed over 320,000 sq. ft. of total leasing activity.

The activity continued on the westside as UCLA bought the former Westside Pavilion. Back in 2019, Google signed a lease at 10800-10900 W Pico Blvd (One Westside) with plans to turn the mall into a massive Google campus. Rippling effects from weakened market fundamentals, delays in construction, and a pullback from tech companies real estate footprints caused Google to postpone their move-in. On December 28th, UCLA purchased the 707,000 sq. ft. property portfolio for $700M or $989.54/sq. ft. with the intentions of making it into a state-of-the-art research center.

Continue east on Pico and north on La Brea, we find the market in a different setting. The Hollywood market found itself dealing with a series of grim challenges, as it navigated through the lingering repercussions of the COVID-19 aftermath, the impact of the writers’ and actors’ strike, and the current slump in Film and TV production levels. However, production is anticipated to increase significantly from January 2024 onwards, though it remains uncertain whether it will attain the levels observed before the strikes..

Q&A with Loralie Ogden

What is important to understand when reviewing a financial analysis on a lease?

It is helpful to do a lease comparison on your various lease options to fully understand the current net value and how your additional expenses add up over the duration of the lease. Initial rent and final rent over a full lease term can vary greatly. Sometimes what looks like the most expensive option turns out to be the least costly in the long run.

What's in My Newsfeed

Hedge Funds Bet on U.S. Real Estate Rebound

Hedge funds piled into long positions on U.S. real estate investment stocks in the week ending Friday, the sixth straight week that these speculators bet on a rebound in commercial and industrial properties. "The move to go long on real estate is not merely a bet on economic endurance but a calculated engagement with a sector showing signs of a U-shaped recovery".

March 4, 2024 | Read more.

When Caitlin Clark Comes to Town

The Big Ten women’s basketball tournament, which starts Wednesday in Minneapolis, has sold out for the first time, at least in part thanks to Clark, the star point guard for Iowa and new record-holder for career scoring in Division I.

March 6, 2024 | Read more.

What I've Been Up To

Hosted my Women in Business Meeting at the New CBRE office in Century City

On February 22^nd a group of 14 women decision-makers gathered in CBRE’s new office to celebrate the new year! The focus was to connect and catch up on each others latest ventures all while enjoying some good food. It also gave me the chance to show off the new office digs. Women hold up half the economy AND do millions of dollars in business together!

Cheering on Will and the Claremont Mudd Scripps Men's Basketball Team

Nothing is more fun than watching a passionate athlete play their sport. NCAA Men’s D3 has their own March Madness! (Who knew) My neighbor, Will Householter, is a starting point guard for Claremont McKenna College basketball team, as a freshman. I could not pass up the opportunity to watch him play in the Big Dance in Thousand Oaks. CMC beat Whitworth to go to the Sweet 16 of the D3 in Pennsylvania. All those years of training and hoops in the back alley has paid off. Go Will!!

View the Q4 2023 market figures for the Greater Los Angeles office market.

21.9%

Overall Vacancy Rate

(1.8M)

SF Net Absorption

1.9M

SF Under Construction

$3.93 USD

Average FSG Asking Rate