INDUSTRIAL VACANCIES AT DECADE HIGH AMID TARIFF VOLATILITY

The Southern California office leasing market represents many of the nationwide leasing and occupancy trends, although local markets each have unique dynamics.

- By David Nusbaum

“The overarching trend in Southern California is a structural shift in office utilization, with elevated vacancy levels persisting as tenants reassess their space needs,” said Jolanta Campion, brokerage firm Cushman & Wakefield’s research manager for Southern California.

Coastal office markets were impacted by the combination of shifting office usage spurred by the pandemic that was compounded by rising interest rates. Occupancy rates fell and construction slowed considerably. Over the next several years, the pace of office conversions and demolitions could surpass new construction.