Survey Shows Leasing of New Office Space on Rise
Almost 939,000 square feet of new office space, nearly three times the comparable figure for last year, was leased in the San Fernando Valley during the first three months of 1985, according to a survey by Grubb & Ellis Co.
But the commercial leasing firm also said this year’s figure represents 17.5% of the total space available, down slightly from the 17.9% rental level reported for the first quarter of last year. And, although considerably more new space was rented in January, February and March of this year than last, a great deal more was available: 4.4 million square feet as opposed to 1.9 million in the first quarter of 1984.
Nevertheless, Grubb & Ellis said the volume alone should make 1985 a good year for those with office space to rent, if the trend continues.
“Over a reasonable length of time we should have a healthy office market,” said Howe S. Forster, vice president and district manager of the firm’s Sherman Oaks office, which conducted the survey. He also said that “1985 has the beginnings of the Valley’s most active leasing year in history.”
The first-quarter 1984 rental figure of 939,000 square feet contrasts with 334,000 for the same period last year.
Property was renting most rapidly in the East Valley, where the level of rented space was 27%, the survey found. The East Valley also had the most space available, 1.6 million square feet.
Renting was slowest in the West Valley, at 8.6%, which had the second highest inventory of space: 1.3-million square feet. The central Valley rate was 12% and the Conejo Valley rate was 17%.