Intro & High Vacancy: How to Stay Competitive
Sep 30, 2026 · 12 min · 5 segments
In this episode, we discuss the impact of high vacancy on operations and how to navigate the current market for best outcomes.
Sep 30, 2026 · 12 min · 5 segments
In this episode, we discuss the impact of high vacancy on operations and how to navigate the current market for best outcomes.
Larry TaylorGuest
Chris TourtellotteGuestYoni ShrikhiGuest
Jason TuviaGuestSo, uh, let's start with some of the bigger hot topic kind of pain points and things in the marketplace to kind of navigate what we're seeing in the market right now.
So, uh, just based on CoStar's data, vacancy right now throughout LA County is sitting at around 5.6%, and I've been doing this for 10 years.
In the beginning of my career, it was always 3%, right? 3%, or in some of the better locations, lower than 3%, right? So now that we're seeing vacancy that's almost twice what we're seeing in historic averages, how are we, as operators and, um, and developers, getting competitive and retaining tenants in an environment where that might not be so easy?
So taking a countywide average, I think, is irrelevant for discussion with respect to, you know, what vacancy is, because every city has their own rules and regulations, so there's 88 cities.
So I think countywide is a little hard to swallow, but most people don't realize the size, the scope, and the breakdown.
Um, you know, one thing that we've done to attract and retain tenants, um, which is sort of interesting, is that w- what, what we've experienced, the number one thing that keeps tenants in your building is actually how many friends they have in the building.
Obviously, rents matter and concessions and that kind of stuff, but if you're, you know, within kind of the market band.
Um, so to that end, like, we'll do re- resident experiences, social experiences where, where people will come together, and we try to bring everyone together-
... to network and meet and hopefully make friends, and we found that to be kind of a unique way to get people to stay.
Have you thought about how much extra rent you're actually getting for it? Is it...
So, uh, let's start with some of the bigger hot topic kind of pain points and things in the marketplace to kind of navigate what we're seeing in the market right now.
So, uh, just based on CoStar's data, vacancy right now throughout LA County is sitting at around 5.6%, and I've been doing this for 10 years.
In the beginning of my career, it was always 3%, right? 3%, or in some of the better locations, lower than 3%, right? So now that we're seeing vacancy that's almost twice what we're seeing in historic averages, how are we, as operators and, um, and developers, getting competitive and retaining tenants in an environment where that might not be so easy?
So taking a countywide average, I think, is irrelevant for discussion with respect to, you know, what vacancy is, because every city has their own rules and regulations, so there's 88 cities.
So I think countywide is a little hard to swallow, but most people don't realize the size, the scope, and the breakdown.
Um, you know, one thing that we've done to attract and retain tenants, um, which is sort of interesting, is that w- what, what we've experienced, the number one thing that keeps tenants in your building is actually how many friends they have in the building.
Obviously, rents matter and concessions and that kind of stuff, but if you're, you know, within kind of the market band.
Um, so to that end, like, we'll do re- resident experiences, social experiences where, where people will come together, and we try to bring everyone together-
... to network and meet and hopefully make friends, and we found that to be kind of a unique way to get people to stay.
Have you thought about how much extra rent you're actually getting for it? Is it...
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