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2021 Q2 Greater Los Angeles Office Research Report

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OFFheroGLA_Q221

Greater Los Angeles – 25% Availability

Greater Los Angeles leasing activity surged and reached nearly 3 MSF for the quarter. Although higher than the past few quarters, it was significantly lower than the 2019 pre-pandemic quarterly average of 4.6 MSF. Much of the activity occurred in West Los Angeles where large expansions and renewals were signed by tech, media and entertainment tenants. While leasing did ramp up, overall vacancy continued to rise and reached a historic high of 19.4%. This rate, which includes direct and sublease space, is 160 basis points higher than the previous peak in 2013 when it reached 17.8%. Nearly 25% of office space, whether vacant or currently occupied, is available for lease. Sublease availability has been trending up for the past year and has stabilized at 4%, staying flat from the previous quarter. The abundance of available space and new supply caused the average asking rent to decline by 2% over the quarter to $3.69 PSF per month. Landlord concessions are expected to remain high and favorable for tenants, as there is still 4.8 MSF of new office construction set to deliver within the next two years.

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2021 Q2 Greater Los Angeles Office Research Report

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