Torrance – Today’s Market – Current State (Q4 2024)

Torrance has remained a standout in the 2024 office market, maintaining stability despite the broader challenges faced by neighboring areas like El Segundo and the LAX corridor. While the El Segundo/LAX area has seen a sharp decline in demand due to layoffs, permanent telework, work-from-home trends and disruptions in the tech and media sectors, Torrance’s office market has proven resilient. The downturn that hit El Segundo/LAX in late 2023, leading to a vacancy rate of over 25% by mid-2024, has not affected Torrance in the same way.

For over a decade, buildings in the El Segundo/LAX area commanded higher rents—sometimes $1.50 to $2.00 more per square foot than Torrance. However, the situation has changed. In El Segundo, landlords are acquiring distressed properties at large discounts and upgrading them to attract tenants while cannibalizing neighboring buildings.  Good ole stable Torrance continues to thrive with a vacancy rate below 12%.

Key areas of Torrance, such as the Hawthorne Blvd. financial district and the 190th Street Corridor, have performed particularly well in 2024. Competitive rental rates, strong demand, and excellent freeway access have kept tenant retention high.

The Torrance market is stable and tenants rarely relocate.   Sublease availability remains lower than expected, and around 75% of Class A and B buildings in Torrance are retaining their tenants. While the Lax area works through its challenges, Torrance is well-positioned to maintain its competitive edge.

Torrance a favorable option for businesses seeking stability and value, especially in contrast to the softer markets in the broader Los Angeles area.

Torrance – Looking Ahead – 2025 Market Outlook

Looking ahead, Torrance is expected to maintain its resilience through 2025. Sublease availability remains limited, except for a few large spaces, and 75% of Class A and Class B buildings are retaining their tenants, even as rents increase. Meanwhile, in the LAX Area, new buyers are revitalizing Class A and B+ buildings, which may result in lower rents and greater concessions as the market attempts to rebound.

Despite some markets showing unpredictability in 2023 and 2024, the general consensus is that office space in Central Business Districts (CBDs) in LA County may experience an accelerated downturn in early 2025.

For a more detailed analysis of the Torrance office market, exploring dedicated resources like the Torrance Office Market Overview would provide additional insights.

Here is some other good information: https://torranceofficespace.com/torrance-office-market-overview/ 

For assistance in finding the right space, click here https://torranceofficespace.com/