Across top LA submarkets, tenants prioritize Class A office space while recalibrating footprint size

Office tenants have increasingly prioritized Class A office space since the 2021 recovery, with Class A capturing over 70% of leasing share and reaching a cycle high of 72.4% in 2025. Even as overall office demand has fluctuated, higher-quality buildings have consistently captured a disproportionate share of leasing activity.

The 2023 spike in average office lease size reflects a temporary return-to-office push, as companies expanded or upgraded space amid social and corporate pressure to bring employees back. While footprint size jumped, office quality preference remained steady which signals that the spike was behavioral, not structural.

By 2025, office leasing has stabilized, but demand remains concentrated in amenity-rich and experience-driven Class A buildings rather than broadly across the market. This suggests that tenants seeking high-quality space are prioritizing attracting and retaining top-tier talent.


Los Angeles
Shane Halpern