Downtown Los Angeles office market report
Q1 2026
The first quarter of 2026 saw DTLA Class A asking rents settle at $49.20 psf, a marginal sequential decline of $0.02 from the year-end 2025. This nominal dip marks a stabilization following the prior quarter’s modest increase, effectively flattening the pricing trajectory as the market enters a period of seasonal recalibration. The sustained plateau in face rents continues to reflect a bifurcated landscape: core assets with institutional-grade specifications maintain pricing power, while a broader base of properties—particularly those navigating recent capital restructurings—continues to leverage targeted concessions to move inventory. With annual growth remaining effectively neutral, the market’s corrective posture persists, prioritizing occupancy stability over nominal rate appreciation.
Rental rates
Downtown Los Angeles Class A asking rents opened Q1 2026 at $49.20 psf, holding effectively steady from the $49.22 psf recorded at year-end 2025. This marginal hold signals a market finding its footing after several years of uneven movement. While the pricing landscape remains bifurcated, the sustained stability in the premium segment—coupled with continued leasing velocity in repositioned assets—points to a growing equilibrium. With nominal rates now consolidating rather than retreating, the foundation is in place for measured, demand-led growth as the year progresses.
Availability
DTLA (CBD) Class A & Trophy availability rate fell to 31.5% in Q1 2026, a 60-bps decline from the prior quarter. This marks the second consecutive period of contraction, with availability now firmly below the broader market average—reinforcing that the urban core has entered a sustained stabilization phase.
Net absorption
DTLA’s net absorption continued its upward trajectory in Q1 2026, posting 304,141 sf of positive absorption—the second consecutive quarterly gain. Of this total, approximately 180,000 sf originated within the CBD, reflecting a concentrated tenant flight to the urban core. Momentum was driven by notable commitments, including OnLocation’s 108,000 sf new lease at 445 S. Figueroa St. and Bank of Hope’s 46,500 sf at 707 Wilshire Blvd. This sustained leasing activity underscores a broadening recovery, with the CBD emerging as the primary beneficiary of occupier demand for high-quality space.
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