Torrance lies in the southern South Bay, while the northern part, including Manhattan Beach and El Segundo, thrives with tech, media, entertainment and financial sectors. Last year, the South Bay’s overall vacancy rate exceeded 25%, but Torrance remained more stable, ending the year with just a 12% vacancy rate. The LAX/El Segundo and Manhattan Beach areas commanded a premium of over $1.50 per square foot.

In early 2024, El Segundo faced significant challenges as the tech, media, and streaming industries saw a mass exodus, leaving much of the Class A and Prime office space vacant. In contrast, office spaces along Hawthorne Boulevard and the 190th corridor in Torrance performed well. Demand remained strong due to the area’s amenities, competitive rental rates—about $1.50 less per square foot than those in the north—and convenient freeway access.

2024 Torrance Office Space Market Outlook

While the regional office market is expected to remain weak through 2024, certain areas like Torrance have stayed stable. Sublease availability is lower than expected, except for larger spaces in the rent-hammered airport area. Both Class A and Class B buildings in Torrance are retaining tenants despite rising rental rates. In the LAX area, lower rates are emerging as new buyers with less debt and a lower tax basis step in to rescue troubled Class A and B+ buildings.

The office market has defied basic economic principles over the past four years, but declines have accelerated this year and are expected to continue through 2024.

Having your own dedicated broker makes it easier to find the right spaces and secure the best deals.

For more comprehensive information on the Torrance office market, visit https://torranceofficespace.com/torrance-office-market-overview/ 

For assistance in finding the right space, check out this link: https://torranceofficespace.com/