2022 Q2 Downtown Los Angeles Office Research Report
The availability rate in Downtown Los Angeles of 29.3% continues to be the highest of any Los Angeles office market. The average asking rent in the CBD (Financial District and Bunker Hill) is down for Class A product by 1.3% year over year. Within the top 18 Tier 1 subset of Class A buildings in the CBD, the average asking rent has fallen below $4.00 PSF per month gross. Although the vacancy rate has steadily increased since the start of the pandemic, some occupancy growth in the CBD caused the overall vacancy rate in Downtown to decrease by 10 basis points to 23.7%. Finance and legal tenants signed sizable deals in Downtown, boosting Q2 leasing activity to 405,375 SF. This brought the year-to-date total to 841,588 SF, 35.1% more than the amount of activity recorded by midyear 2021. Recovery is slower Downtown compared to submarkets with a concentration of tech and media. In an attempt to meet the growing entertainment demand, developers have plans to build offices with studio and soundstage space in and around the Arts District.