Back to blog
Office Freedom
Office Freedom
  • 1 Minute Read
  • 08th August 2008

Beverly Hills Office Landlords feel the Pinch as Tenants Benefit

Since the credit crunch started, the office market trends have shifted from a landlord’s market, to a more a level playing field between landlords and tenants in Los Angeles, especially in Beverly Hills.

As per Grubb & Ellis Market Report for the second quarter of 2008, the effects of the credit crunch have become evident and the demand for office space has started to slow down. The current vacancy rate in Beverly Hills is about 5.1%, which is a very low rate now but will start to rise.

Even if Beverly Hills still has skyrocketing rents, the current economic situation has seen the landlords under pressure to fill their office space. Shared or flexible office space seems to be a great answer to the credit crunch, as the uncertainty of the market makes commitments to a long lease more risky for all types of businesses.

The Beverly Hills office market has started to turn towards a tenants’ market because of lower rates and increasing opportunities for the tenants currently looking for office space on shorter term, flexible leases.

Search Office Space, a broker specialized in shared & short term office space across the United States, are advertising many more properties with rent free periods and many other special offers in Beverly Hills and the Los Angeles area. They can help landlords to fill vacant space quickly as well as offer tenants cost effective office space solutions. Using a broker like this is a great way to get up to the minute rates and availability options in the area, without having to find and contact business centers individually.

In the medium term landlords in Beverly Hills and across Los Angeles will need to look at the types of leases and rates they offer. Tenants will gain more bargaining power but should still expect to pay a premium rate as location will always make a difference no matter what the economic climate.