The COVID-19 pandemic has had a profound impact on the national and regional economies, but CBRE Econometric Advisors (CBRE EA) is projecting a robust recovery beginning in 2021, with office markets projected to fully recover by Q4 2021.
Base rates in the Greater Los Angeles (GLA) region remained stable quarter-over-quarter at $3.60/month/sq. ft. FSG, but effective rent began to lower with increased concessions.
Both lease transaction volume and investment sales slowed in Q2, with leasing volume at one-third of where it was a year ago and only one significant investment sale to note. GLA had over 2 million sq. ft. of negative net absorption, bringing vacancy to 13.6% (compared to 12.5% in Q1 2020), however, vacancy rates are expected to recover by 2022.