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Receive and File an Update on Culver City Commercial Vacancy Rates.
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Meeting Date: October 9, 2024
Contact Person/Dept: Luis Gonzalez, Economic and Cultural Development
Elaine Warner, Economic and Cultural Development
Phone Number: (310) 253-5708
(310) 253-5777
Fiscal Impact: Yes [] No [X] General Fund: Yes [x] No [X]
Public Hearing: [] Action Item: [x] Attachments: []
Public Notification: GovDelivery (10/7/2024)
Department Approval: Jesse Mays, Assistant City Manager (10/03/2024)
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Commercial vacancy remains at high levels as work from home trends continue to be utilized throughout several sectors in Culver City. At this time, Culver City is experiencing a commercial vacancy rate of 22.6% across 97 properties and comprising 1,749,626 square feet. The majority of availability is located within the Fox Hills/Culver Point area accounting for 26% of the total vacancy. Additional availability in the City includes Hayden Tract at 22%; Jefferson Corridor (between Overland Avenue and City Boundary to the East) at 11%; Mid-Washington Boulevard (between 405 Freeway and Downtown) at 9% and the Arts District at 13%. Conversely, retail vacancy rates remain low at 3.4%.
CoStar reports that vacancies have increased steadily since Q3 2022 which is not unexpected given the duration of the Covid 19 pandemic stay at home requirements, organizational restructuring, and work-from-home policies.
Neighboring cities are also experiencing similar levels of commercial/office availability including Santa Monica (20.3%) West Hollywood (14.5%), Beverly Hills (18.3%). CoStar projects that vacancies will increase and plateau at 23% until 2029. As a result of the increased availability, price per square footage has also decreased from $56 per square foot to $52.
Although the City continues to experience above normal vacancy rates, sales tax generally has returned to pre-pandemic levels throughout geographic areas and districts. HDL reports sales tax trends remain consistent, with most major industries performing at similar levels compared to Q3 2023.