2022 Q1 Downtown Los Angeles Office Research Report

Key Takeaways

• The Downtown Los Angeles overall availability rate of 29.8% is currently the highest of any Los Angeles office market.
• There was an increase in vacancy across all Downtown submarkets over the quarter.
• High vacancies caused rent growth to be sluggish and relatively flat year over year.
• Although activity has picked up in Greater Downtown areas, this submarket has an elevated availability rate of over 40% and an average asking rent that is down by 7% from a year ago.
• Net absorption finished at negative 496,677 SF, with 72.4% of this occupancy loss in the Financial District and Bunker Hill.
• Recovery is lagging compared to other Los Angeles office markets that have more flexible low-rise product as high-rise demand remains lower.