- Leasing volume reached a cycle high of 6.56 million square feet in 2019, coinciding with the narrowest Class A versus Class B rent spread in the last ten years at just $1.95 psf. Historically, tenant demand has been strongest when the cost to upgrade into higher-quality office space is compressed, allowing occupiers to secure premier buildings for only a modest increase in occupancy cost.
- Following the pandemic slowdown in 2020, both leasing activity and the Class A rent premium rebounded. By 2024, the rent differential reached a post-pandemic high of $6.17 psf while leasing volume climbed to 5.69 million square feet, reflecting growing tenant confidence, return-to-office initiatives, and continued demand for best-in-class office environments across West Los Angeles.
- Since 2024, the Class A rent premium has declined sharply to $2.88 psf mid-2026, which is the lowest post-pandemic rent spread, and the second-lowest level recorded over the past decade. While leasing activity has moderated, landlords remain aggressive with concessions, tenant improvement allowances, and rental rate negotiations to address remaining vacancy. As a result, tenants have a rare opportunity to upgrade into Class A space at a fraction of the premium seen just two years ago, creating one of the strongest tenant-favorable leasing environments since 2019.
Los Angeles
Shane Halpern
