2024 Market Outlook

2024 Market Data and 2024 Outlook

The 2024 Market Outlook for the 4 million square feet of commercial office space in Downtown Long Beach, (CBD) for Class A and Class B buildings, continues to face significant downward market pressures.  This was spurred on by post COVID uncertainties and high vacancy which hit an all-time high of 29% at year end. This downward trend began slowly way back in 2021. On the other hand, there are bright spots where space is being re-used for academia, arts, innovation and non-profit based collaborations.  This is occurring throughout the city.


The 2024 market outlook for Long Beach Downtown office space will be dismal for the remainder of the 2024 calendar year. Vacancy will continue to rise, and hemorrhaging will continue.  Lease rates will continue to decline especially in the older and Class B building category. New tenants to downtown are taking advantage of the current market which will face additional pressure through 2024. Some Class B plus office building renovations such as 180 E Ocean, 200 Pine Ave. and 211 Ocean Bl are largely benefiting from a flight to quality and the strong pair-down-trade-up trend expected to continue through this year. This trend will have positive effect for the only three Class A projects in the CBD. But World Trade Center, Shoreline and especially Landmark Square have big occupancy holes they have to dig out of first.


The additional 4 million square feet of office space in Suburban Long Beach tells a totally different story especially the near zero vacancy at Douglas Park adjacent to the Long Beach airport. As a whole this market is stable and hovering at 15% vacancy average overall.


Real Estate Profile for City of Long Beach

The City of Long Beach profile is difficult to define, and that’s one of its strengths. With ocean beaches and a clean Alamitos Bay (rated A+ by Health The Bay during Spring and Summers), it’s also an industrial and shipping superpower. It’s a beach city with 6 core prominent shopping neighborhoods near the coast and which are home to an eclectic mix of businesses, retail concepts, art, history and appeal.

The large and popular Belmont Shore is a prototypical California beach environment with trendy restaurants, retail and fitness. The there’s Retro 2nd and PCH, Retro Row on 4th Street, LBX and The Hangar in Douglas Park, the East Village Arts District and Bixby Knolls. Its diversity is a powerful driver for growth.

In the past, the institutional money back East and in New York did not invest or develop in Long Beach because they did not understand or recognize our city and its vastly promising growth dynamics, but that has changed.  Over 4,000 rental units downtown were built over the past eight years, and an additional 3,000 for rent units are in planning, approved or under construction. Additionally with California’s Housing Affordability Act, 25,000 dwelling units throughout all of Long Beach are mandated to be constructed over the next eight years. Clearly Long Beach is thriving market and powerful financial anchor for the entire Greater Los Angeles economy.  

As the other SoCal beach cities become more and more prohibitively expensive places to own and live, Long Beach is becoming more and more attractive than ever. It’s one of the few cities on the beautiful Southern California Pacific Ocean coastline.