Stable Market Activity During Third Quarter
The San Fernando Valley and Ventura County office market recorded positive net absorption at 38,800 SF, and vacancy declined by 10 basis points in the third quarter. Asking rental rates recorded $2.32 PSF FSG, a 3.1% year-over-year increase. With no new construction on the horizon, the market will remain supply-constrained and absorption is expected to remain positive. Given these market conditions, the San Fernando Valley and Ventura County office market trends are expected to move at a slow, positive rate.
The San Fernando Valley and Ventura County office market closed the third quarter with positive net absorption recording at 38,800 square feet (SF).
The office market vacancy rate decreased by 10 basis points to 13.9%.
Rental rates increased by $0.05 from second quarter to $2.32 per square foot (PSF) full service gross (FSG).
No new projects were delivered in the third quarter, and no new projects are currently under construction.
The Los Angeles County unemployment rate increased to 4.8%, an increase of 40 basis points over last quarter. Though the unemployment rate increased compared to last
quarter, total non-farm employment grew by 0.8% (37,200 jobs) compared to one year ago.
Vacancy rates in the San Fernando Valley & Ventura County market should remain on the current path of stable decrease through the end of 2017 due to lack of new construction. As vacancy continues to be stable and trend downward, both absorption and leasing activity are expected to remain positive through the end of 2017. Minimal federal interest rate increases should help keep investment activity steady through the end of 2017.