Downtown Los Angeles office market report
Q3 2025
Downtown Los Angeles's office market is in a defined corrective phase, with average asking rents receding to $49.03 psf in Q3 2025. The market's trajectory is being shaped by a fundamental repricing, accelerated by a growing cohort of assets under new ownership.
Rental rates
Downtown Los Angeles office asking rents moderated to $49.03 psf in Q3 2025, a slight 0.5% decrease QOQ. This trend reflects two offsetting trends: a pronounced flight-to-quality is sustaining stable rates for well-designed, amenity-rich Class A spaces, while downward pressure intensifies on lower-quality assets lacking competitive features.
Availability
The Downtown Los Angeles office availability rate stabilized notably in Q3 2025, rising a mere 10 basis points to 32.7%. This sharply decelerated pace of increase suggests the market may be finding its floor. The persistence of high availability, now coupled with solid leasing activity, indicates a healthy recalibration is underway.
Net absorption
Downtown Los Angeles office net absorption showed marked improvement in Q3 2025, nearly reaching equilibrium at -20k sf —a significant recovery from the -217k sf recorded in Q2. This return toward a neutral level was supported by several key new leases, including SoCal Gas's 55k sf expansion. The data strongly suggests that new tenant demand is now broadly offsetting ongoing right-sizing, laying a stable foundation for a return to positive absorption.
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