Scott, Author at Torrance Office Space

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.

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

New Common Area

Overview of Torrance Office Space & Two Good Maps

I wish I could give Scott a 10 star review! Professional, honest and easy going. He is savvy and hard working. One of the best commercial real estate professionals in the area.
Larry Matjika
President, MEDEX Medical

Torrance Office Space and South Bay Cities Office Market Overview

Torrance and Redondo Beach are the southernmost cities in the South Bay, while Manhattan Beach and El Segundo (the LAX Area) are located to the north. The LAX Area, covering about 10 square miles, has experienced rapid growth and high demand, attracting tenants from the entertainment, tech/media, software, private equity, and financial services sectors.

In contrast, the Torrance Office Market and Redondo Beach span 25 square miles and offer significantly lower rents. However, some exceptions exist, with certain Class A and core buildings asking $3.50 or more per square foot, particularly in the financial district along Hawthorne Blvd, the 190th Corridor, and a few buildings near Old Town.

Most of Torrance is not near the 405 Freeway and is located at least 10 miles south of LAX. It marks the southern border of Los Angeles County and is home to major companies such as ExxonMobil, Toyota Finance, Skechers, Honda North American Headquarters, Herbalife, Honeywell, Robinson Helicopter, Torrance Memorial, and UCLA Health.

Torrance: Competitive Office Market and Major Developments

The fully renovated Del Amo Fashion Center is a notable feature of Torrance, offering high-end luxury brands such as Tumi, Tesla, Dolce & Gabbana, Coach, and Nordstrom. It ranks as one of the ten largest malls in the United States. Nearby, an office project called The Crossing adds to the appeal of the Hawthorne Boulevard and Torrance financial district. Additionally, the 190th St. Corridor, which runs parallel to the 405 Freeway, has a major renovation project called The Enclave, showcasing features that attract and retain office workers.

Occupants in Torrance tend to be more traditional office users, which has helped shield the city from the sharp downturn in the “techtainment” and media/software sectors that have heavily impacted the LAX Area during the 2023/2024 downturn. As mentioned, lease rates in Torrance are highly competitive, typically $1.50 or more per square foot less than comparable Class A office buildings near the airport.

For more solid information on Torrance, visit #WhyTorrance at https://storymaps.arcgis.com/stories/e11911255ee04ae9aa83ec7a980e4e8d

Our homepage at http://torranceofficespace.com lists about 20 representative office buildings across the city outlining their features and amenities.