- The 405 freeway provides a useful dividing line between two distinct Westside office environments: Coastal (Santa Monica, Sawtelle and Brentwood) and Corridor (Beverly Hills, Century City and Westwood), which have historically exhibited different leasing patterns. Leasing velocity, measured as leased square feet as a share of total inventory, peaked in Coastal markets at 10.9% in 2016 versus 8.2% in Corridor markets. Both markets froze at roughly 3.9% in 2020, but their recoveries diverged. Coastal leasing velocity surged to 10.2% in 2021, driven in part by major post pandemic commitments, before settling at 6.2% in 2022 and 2023. Corridor markets recovered more steadily, rising from 6.2% in 2021 to 8.0% in 2022 and 8.9% in 2023. While Coastal briefly regained the lead in 2024 at 9.0% versus 8.3%, Corridor markets widened the gap to 2.7 percentage points in 2025. Since 2022, Corridor markets have led in three of four years, suggesting a more sustained leasing advantage rather than a single year spike.
- Coastal markets have historically attracted growth-oriented technology and media tenants, contributing to greater swings in leasing activity but also creating the potential for outsized rebounds when tenant demand strengthens. Oracle’s 175,000 SF renewal and expansion at Water Garden in Santa Monica helped drive the 2016 leasing spike, while Hulu’s 351,000 SF renewal and expansion across 2450 & 2500 Broadway and Colorado Center contributed significantly to the 2021 surge. Today, Coastal vacancy remains elevated at roughly 22%, providing tenants with greater choice and landlords with an opportunity to reposition and capture demand. The market’s concentration of technology and media companies also creates a potentially significant upside as growing companies expand headcount and footprints. While smaller tenants can be more sensitive to changes in funding and business performance, this same growth orientation can generate meaningful leasing velocity during expansionary periods. Limited capital markets activity in recent years has also kept much of the Coastal inventory anchored to existing ownership and rental structures, creating an opportunity for well positioned landlords to compete for tenants through targeted concessions, upgraded space and flexible deal structures. Compared with the steadier leasing patterns of the Corridor, Coastal’s combination of lifestyle appeal, proximity to the beach and concentration of growth-oriented tenants creates meaningful upside as tenant demand strengthens.
- Corridor markets appeal to tenants that place a premium on location, accessibility, safety, and the quality of the workplace, particularly financial, legal, and professional services. The concentration of newly renovated and amenity rich buildings in Century City, Beverly Hills and Westwood provides tenants with high-quality space in walkable environments that offer restaurants, retail, hotels and other services. Newer product, such as 1950 Avenue of the Stars in Century City, commands premium rents approaching $10 per square foot, underscoring the market’s ability to attract tenants willing to pay for a high-quality workplace and a prestigious address. The Corridor also benefits from its central location within the broader Los Angeles basin, providing relatively convenient access for employees commuting from the San Fernando Valley, Hollywood, Westside and eastern Los Angeles. Its tenant base tends to include larger, institutional and global firms with more predictable revenue streams and less exposure to the funding and headcount volatility seen among smaller technology and media companies. As a result, Corridor leasing tends to be less dependent on rapid expansion cycles, with tenants often prioritizing long term stability, accessibility and a premium workplace experience.
Coastal vs corridor: the Westside leasing battle across the 405 Freeway
Coastal vs Corridor: The Westside Leasing Battle Across the 405 Freeway
August 27, 2026
