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        <span class="font-sans font-bold uppercase tracking-widest text-crimson text-sm">Data Report</span>
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        <time class="font-mono text-sm text-slate" datetime="2024-11-01">2024-11-01</time>
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      LA Commercial Lease Rates by Neighborhood
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        Our quarterly analysis of price per square foot across 45 LA neighborhoods. Culver City holds strong while Santa Monica sees corrections.
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          <span class="text-paper font-sans font-bold text-sm">E</span>
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          <p class="font-sans font-bold text-ink uppercase text-sm">Elena Rostova</p>
          <p class="font-mono text-xs text-slate">Staff Writer</p>
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<p>The Los Angeles commercial real estate market remains deeply bifurcated. While macro headlines focus on the distress in the urban core, specific submarkets catering to the entertainment and aerospace sectors are exhibiting surprising resilience.</p>

<p><em>Note: All rates discussed are annual Triple Net (NNN) asking rates. To calculate your true monthly burden including CAM and taxes, use our <a href="/tools/commercial-lease-nnn-calculator/">NNN Lease Calculator</a>.</em></p>

<h2>The Westside Correction</h2>

<p>For the first time since 2011, Santa Monica is seeing sustained downward pressure on asking rents. The tech exodus—driven by remote work policies and the collapse of mid-tier SaaS funding—has pushed Class A vacancy rates above 22%. Asking rates have dropped from a peak of $72/SF/Yr to currently hover around $58/SF/Yr.</p>

<p>However, landlords are fiercely resisting further rate cuts, preferring instead to offer massive concession packages. "We are seeing tenant improvement (TI) allowances of $120 to $150 per square foot on 10-year paper," notes one prominent Westside broker. "Landlords want to preserve the face rate for their lenders, so they are throwing cash at the build-out."</p>

<h2>The Culver City Anomaly</h2>

<p>Culver City remains the lone bright spot in the traditional office market. Anchored by the sprawling campuses of Apple, Amazon Studios, and HBO, the submarket is experiencing a vacancy rate of just 11%, with Class A asking rents remaining steady at $65/SF/Yr.</p>

<p>The demand here is driven by the convergence of tech and entertainment. Companies require secure, high-bandwidth facilities near major studio lots, and they are willing to pay a premium to be within walking distance of the downtown Culver City retail corridor.</p>

<h2>Industrial and Aerospace: The El Segundo Boom</h2>

<p>While traditional office space languishes, specialized industrial space in the South Bay is tighter than ever. Driven by the influx of defense tech capital (see our coverage on <a href="/tech/silicon-beach-vc-funding/">Silicon Beach VC shifts</a>), El Segundo flex/R&amp;D space is virtually non-existent.</p>

<p>Properties that can support heavy power requirements, high bay doors, and secure compartmentalized information facilities (SCIFs) are commanding premiums of up to $42/SF/Yr—an astronomical figure for industrial space, rivaling traditional office rates in other parts of the city.</p>

<h2>Looking Ahead to 2025</h2>

<p>Expect to see significant distress hit the market in the second half of 2025 as a massive tranche of 5-year and 10-year CMBS loans come due. Landlords who bought at peak valuations in 2018-2019 will find it nearly impossible to refinance at current rates with 25% vacancy in their buildings. This will likely trigger a wave of asset recapitalizations and forced sales, particularly in DTLA and Century City.</p>

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