2024 Torrance Office Space Market Outlook

2024 Market Report

Torrance is located in the southern region of the South Bay, while the northern region includes Manhattan Beach and El Segundo, known for their tech, media, and entertainment sectors. By the end of 2023, the overall vacancy rate in the entire South Bay exceeded 25%. However, the office space market in Torrance was more stable, ending the year with just a 12% vacancy rate. El Segundo’s Class A office space commanded a premium of up to $1.50 more per square foot, exacerbating the situation near LAX.

In the first half of 2024, El Segundo faced significant challenges due to a mass exodus and financial troubles in the tech, media, and streaming sectors. Despite this, interest and demand for office space along Hawthorne Blvd and the 190th St. corridor at the 405 Freeway remain strong. This is due to the area’s amenities, competitive rental rates averaging about $1.50 less per square foot per month, and convenient freeway access.

While elements of a weak office market will persist through 2024, certain buildings, neighborhoods, and areas, such as Torrance, remain sound and stable. Sublease availability, except in large tenant spaces in the rent-hammered airport area, is lower than expected. Class A and even Class B buildings are retaining tenants and maintaining or even increasing rates. Lower rates may emerge as new landlords with less debt and a lower tax base step in to rescue troubled Class A properties, likely impacting all markets.

For the four years ending December 2023, the office market defied basic economic principles. However, some declines have begun this year and are expected to continue through the end of 2024.

Being fully represented by your own broker makes it much easier to find motivated landlords with the right space offering the best deals.

Find Your Perfect Space for Rent or Sublease

Torrance Map

Torrance Office Space Market Profile

2023 Office Lease Market

Torrance Office Market

In the last 10 years the South Bay office market consisting of El Segundo and Manhattan Beach has largely outperformed the Torrance Office Space Market by capturing new Class A entertainment, tech, media and financial service tenants.  But in 2024 El Segundo started suffering a huge downturn as technology & entertainment companies significantly reduced their space requirements due to permanent work-from-home policies & changing business climate. Torrance, on the other hand, is very stable partially because it is the southwest border of Los Angeles County and home to Toyota Finance, Motorcar Parts, Sketchers, Honda, Herbal Life, Torrance Memorial and UCLA Health.  The Enclave on 190th is awesome and new.  And perhaps surprisingly, the Del Amo Fashion Center is home to high-end luxury brands like Tumi, Tesla, Dolce-Gabbana, Coash and Nordstrom.  The center is one of the ten largest  malls in the United  States. The Crossing office project also brings strong appeal to the Hawthorne Boulevard financial district. 

Occupiers/tenants in Torrance are more traditional office users insulating it from the 2024 partial meltdown in “Techtainment” near LAX.  Lease rates are about a $1.50 less than new Class A near the airport, and strong capitalized landlords have made significant investments into amenities and other improvements to remain competitive and attract tenant faced with high rental rates. Please have a look at Torrance Office Space available for lease