Tenants Enjoying a Renter's Market as Landlords Struggle
They tend to be our least favorite people, since we write hefty checks to them every month for our rent, but landlords aren't doing so well these days. Vacancies in commercial buildings are up and rising, say recent reports, and this year looks to be a tough one for landlords looking to lease. "Los Angeles County's office, retail and hotel markets are getting the worst of it, while apartment and industrial landlords are faring somewhat better," explains the Daily Breeze. They have some figures courtesy Hessam Nadji, managing director at Marcus & Millichap Real Estate Investment Services:
The firm projects office vacancies in Los Angeles to climb to about 14percent this year from almost 11percent last year. Rents are expected to decline between 5percent and 7percent this year. In both cases, the projections are a little bit less than the national average.
Building owners are being encouraged not to sell holdings right now, because, frankly, no one is buying.Right now, there are a lot of empty spaces all over, including those available as sub-leases, and apartment space. Residential renters might enjoy having more rental options for lower prices: "Nadji expects apartment rents to drop 3percent to 4percent from where they were last year, while vacancies will approach 6percent, up from 4.5percent last year." That's good news if you're looking to rent; of course, it helps to have a job, which has also become an increasing worry for many Angelenos.