2024 Market Report

Torrance is in the south section of the region known as the South Bay. 

Tech, media and entertainment is in the north section, namely Manhattan Beach and El Segundo.  South Bay vacancy overall was over 25% at the end of 2023, while Torrance remained a stable and tight submarket ending with 12% vacancy by comparison.  El Segundo Class A commercial office space comes at a $1.50 premium or more per square foot.  In the first half 2024, El Segundo is all but hemorrhaging from the mass exodus and financially troubled tech, media and streaming sector.  

Interest and demand for Hawthorne Blvd and the 190th St. corridor at the 405 Fwy remains strong because of amenities, rental rates that average about $1.50 less per square foot per month and freeway access.    Elements of  a weak office market will persist through 2024, but in certain buildings, neighborhoods and areas, such as in Torrance,  the market is sound and stable. On subleases, except in the large tenant space in the rent-hammered airport area, there are far fewer than one might expect. Class A and even Class B buildings are keeping tenants and even pushing rates.  Lower rates are likely as new landlords with less debt and a lower tax base step in to rescue troubled Class A product.  This will likely impact all markets.    However, for the 4 years ended December 2023, one would be hard pressed to explain the office market adhering to any basic economic principle.  But beginning this year, some hemorrhaging has begun and will persist through the EOY 2024.

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