A driving force in the SoCal office submarkets: Record level vacancy rates in conjunction with high impending loan maturities

Loans are maturing from 2023 to 2027 throughout Los Angeles and Orange County’s prominent office submarkets, seeing increasingly high values above $40M dollars. West LA and Hollywood/ Mid-Wilshire lead the submarkets with above $2B in total maturing loans

Office vacancy rates throughout the Southern California markets remain at an average of 17%, where West LA and Hollywood/ Mid-Wilshire possess some of the highest rates at 35% and 21% respectively. This shows a positive correlation between total loan amount due and vacancy rates within the submarkets

Upcoming loan payments could influence owners to add capital improvements, sell, or try new prospecting techniques such as a concessions, until demand increases and vacancies decrease