Office Vacancy Rate Down

A surge in leasing activity has put a small dent in the South Bay office vacancy rate, but more than 20% of offices here remain unoccupied, according to quarterly real estate surveys conducted independently by two companies.

Grubb & Ellis Commercial Real Estate Services reported this week that 21.5% of the South Bay’s 28.7 million square feet of office space is unoccupied, compared to 23% a year ago. Company analysts said that a record amount of space--840,000 square feet--was leased in the first three months of 1989, with particularly heavy leasing in the Torrance-405 Freeway and Los Angeles International Airport areas.

The Seeley Co.’s Torrance office reported that the vacancy rate dropped 2%, to 22%, in the first three months of 1989 compared to the last three months of 1988. The vacancy rate dropped 4% in new, high-quality buildings, while the rate increased in older, less desirable buildings, the company reported.