Michael Knott, managing director of Newport Beach, California-based research firm Green Street, wrote in an e-mail that West Los Angeles is the top office market based on forecasted rent growth growth through 2017. In contrast, he said San Francisco’s office market is now in the “fifth inning” of a nine-inning recovery, with “decelerating” growth that’s dropped its five-year outlook for rent increases to second in the U.S. based on revenue per square foot.
Office rent growth in San Francisco has been quite spectacular while office rent growth on the West side of Los Angeles has been slow. San Francisco’s rent growth has produced a development wave that is the greatest since 1991, while the West side Los Angeles office growth consists of a few warehouse conversions. You can read the full article below.