Thanks to its prime location, diverse business base and affordable leasing rates that make it a viable alternative to the pricier West Los Angeles and Downtown markets, El Segundo has recovered nicely from the high-tech downturn of several years ago and continues to flourish despite difficult economic times. With major projects such as Northrop Grumman's expansion and the arrival of two new data centers, El Segundo has seen its Class A office space vacancy rate, which had risen as high as 23 percent just a few years ago, drop below 10 percent (9.8 percent) for the first time in nearly a decade.
El Segundo is also prized for its affordable leasing rates, which are considerably lower than those of West Los Angeles and other key business sectors.
Average Asking Rents by Submarket, 4th quarter of 2008, Class A Buildings:
Sources: Colliers.com and Grubb-ellis.com