Fewer deals, stronger Conviction: Finance and law anchor LA office’s structural new normal

LA Office Market: Annual Leasing Activity SF and Deal Count (2016–2026)

Chart showing LA office leasing activity and deal count from 2016 to 2026 YTD. Leasing volume peaked at 19.4 million square feet in 2018, fell to 9.7 million in 2020, recovered to 14.9 million in 2025, and stands at 3.6 million YTD in 2026. Deal count follows a similar pattern and remains below the pre-pandemic average of 4,414 annual deals.
  • As the chart illustrates, leasing SF peaked at 18.6–19.4 million SF between 2016 and 2019, collapsed to a 9.7 million SF trough in 2020, and has since plateaued at roughly 13.5–15.6 million SF, approximately 20% below the pre-pandemic average. Deal count has followed the identical arc, declining from 4,689 annually in 2016 to 3,750–3,870 in 2022–2025, confirming that fewer transactions, not smaller ones, explain the gap.
  • Among 2026 YTD leases of 10,000 SF and above, Financial Activities and Legal Services account for 35% of transactions while commanding the highest average rents at $5.38 and $5.08 per square foot, respectively. Technology, historically a primary absorption driver, registers only two transactions. Barings LLC ($9.75/SF) and Perkins Coie ($7.60/SF) now anchor Class A rent discovery in Century City.
  • New direct leases in 2026 YTD carry an average term of 104 months, 44% longer than the 72-month renewal average, indicating that tenants selecting new space are making long-duration commitments. The dashed reference line on the chart underscores how far deal count still trails the pre-pandemic floor of approximately 4,400 transactions annually.

Greater Los Angeles
Ka Lok Marco Chung

June 24, 2026

Get market intel

US-CA-LAX LA - Downtown

: 0 / 280

: 0 / 280

: 0 / 280

: 0 / 280

: 0 / 280

: 0 / 65000

: 0 / 280

: 0 / 65000

: 0 / 280

: 0 / 280