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2022 Q2 Greater Los Angeles Office Research Report

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2022 Q2 Greater Los Angeles Office Research Report

Greater Los Angeles year-to-date leasing surpassed 7.1M SF at the midyear point, 8.8% more than the amount recorded this time last year. While the largest leases were signed by entertainment and tech tenants over the past few quarters, most of the significant deals were completed by finance and legal tenants in Q2. Occupancy growth was offset by move-outs which kept the overall vacancy rate flat at 20.3%. Office availability, which includes vacant and occupied space with expiring leases, increased by another 10 basis points to 25.2%. This was mainly due to an uptick in sublease availability which reached 4.2%, a 20 basis-point increase from the previous quarter. The sublease availability rate is highest in San Fernando Valley & Ventura County, followed by West Los Angeles and Tri-Cities. The abundance of available space and new supply caused the average asking rent to decline by 1.6% to $3.70 PSF per month. Landlord concessions are expected to remain high and favorable for tenants, as there is still 3.2M SF of new office construction set to deliver over the next year.

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2022 Q2 Greater Los Angeles Office Research Report

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