Downtown Los Angeles office market report
Q2 2025
Downtown LA’s office market saw a slight pullback in Q2 2025 following a strong start to the year. Net absorption turned negative at -217k SF as large tenants consolidated, pushing availability up to 32.6%. While average asking rents dipped slightly after four quarters of growth, the overall market remains in transition, with trophy assets showing early signs of stabilization.
Rental rates
After four consecutive quarters of growth, Downtown LA office rents dipped slightly in Q2 2025—down $0.18 from Q1’s peak—signaling measured recalibration in response to market pressures.
Availability
Office availability rose 80 bps to 32.6% this quarter, reflecting continued tenant right-sizing, though trophy assets are beginning to stabilize.
Net absorption
Following Q1’s surge, net absorption reversed to -217k sf, driven by major consolidations like KPMG and Kirkland & Ellis—but YTD absorption remains positive, pointing to cautious but ongoing recalibration.
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