2022 Q3 Downtown Los Angeles Office Research Report
Overall net absorption was positive in Downtown Los Angeles, with some occupancy growth in the Financial District. Despite this, new office supply in the Arts District increased the vacancy rate in Downtown to 24.4%. This rate remains unchanged from the beginning of the year. The delivery of a Class A office building at 2130 Violet Street caused the vacancy rate in the greater Downtown submarket to exceed 40%. While Downtown Los Angeles struggles with high office availability, leasing activity has been consistent in 2022 with a quarterly average of approximately 457,000 SF. This is a 51.8% improvement over the 301,000-SF quarterly average in 2021. There are plans to develop a large studio campus with soundstages and office buildings in the Arts District to meet the demand of the thriving media and entertainment industry. This project involves replacing the industrial warehouses and parking lots in the area, which could bring life to greater Downtown and improve market fundamentals.