2025 Market Outlook for Downtown Long Beach Office Space
The 2025 market outlook for the 4 million square feet of commercial office space in Downtown Long Beach (CBD), which includes Class A, Class B and three Class C buildings, is no longer facing downward pressure or accelerating in decline. Overall CBD vacancy rates is around 24% entering 2025. Rates are more tricky to project but occupancy has likely seen the bottom.
Downtown Long Beach Outlook
Some Class B office buildings, specifically 180 E Ocean, 200 Pine Ave., 211 Ocean Blvd and 100 Broadway., are benefiting from a “flight to quality.” Translated this means tenants trade up to better-quality spaces. But more often it’s less square footage. This trend is expected to continue through 2025. As a result, the three Class A projects in the CBD (World Trade Center, Shoreline, and Landmark Square) may see some positive effects. However, these buildings still face significant occupancy challenges, especially Landmark Square.
Suburban Long Beach Outlook
The suburban office market in Long Beach tells a more positive story. The additional 4 million square feet of suburban space, particularly at Douglas Park near Long Beach Airport which is over 95% occupied. Overall, the suburban market remains stable, with an average vacancy rate of around 15%. Bixby Knolls is at 84% occupied and the airport area is 83% occupied.