Torrance Office Market Profile

2023 Office Lease Market

Profile of the Torrance Office Market

In recent years the South Bay office market nearer LAX have outperformed Torrance capturing new Class A entertainment, tech, media and financial services tenants.  El Segundo will suffer in 2024 as technology & entertainment companies begin to reduce their space requirements due to permanent work-from-home policies & changing business climate. Torrance, on the other hand, is near southwest border of Los Angeles County and home to the US headquarters of Honda Motors.  The Del Amo Fashion Center and The Crossing bring strong appeal to the Hawthorne Boulevard financial district. High end luxury brand stores are onsite at one of the five largest malls in United States.

 

Occupiers/tenants in Torrance are more traditional office users insulating it to some degree from the fast moving “techtainment” or media markets.  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 project improvements during Covid to remain competitive and attract tenant faced with high rental rates. Please have a look at Torrance office space available for lease

2024 Market Outlook

2024 Market Report

Torrance is on the southwest border of Los Angeles County in a region known as the South Bay and is home to the US headquarters of Honda Motors.  The Del Amo Fashion Center and The Crossing bring strong appeal to Hawthorne Boulevard the financial district.  It offers high end luxury brand stores as one of the 10 largest malls in the United States.

El Segundo, Manhattan Beach and El Segundo are hubs for tech, media and entertainment. South Bay vacancy overall was over 25% at the end of 2023, while Torrance remained a tight as a sub market ending the year with 12% vacancy by comparison.  El Segundo Class A runs about $1.50 or more per square foot. 

Interest and demand for Hawthorne Blvd and the 190th St. corridor is much stronger because of amenities, rental rates that average about $1.50 less per square foot per month and freeway access.    Overall weak office market conditions will persist through 2024.  On subleases, except near the airport, there are far fewer than one might expect.  Similarly, there’s been very little rate correction until this year.  As mentioned, Class A and B buildings will trade at large discounts.  Lower rates will follow as the new landlord will less debt  and lower taxes.  For the four years ending December 2023, one would be hard pressed to explain office market economics.  But beginning this year, the real hemorrhaging has begun and will worsen through all of 2024.

Being 100% represented by a broker makes finding motivated landlords, the right space and competitive terms easier. 

Find Your Perfect Space for Rent or Sublease

Torrance Map