Los Angeles office market report

Q3 2024

The Greater Los Angeles office market continues to remain stagnant as work-from-home policies remain the norm for most office occupiers. Leasing activity has been down for the last three quarters, with only 3.5 million total square feet leased in Q3, and total availabilities have reached 21.69% overall. Owners are struggling to find new tenants to fill empty units, especially as occupiers continue to downsize their office footprints.

-674k sf

Net absorption

The Greater Los Angeles office market experienced a 1.5 million square foot improvement in absorption in Q3 2024, at -674K square feet, an increase from Q2’s negative 2.0 million square feet.

$43.35/sf

Asking rents

The average full-service asking rent in the Greater Los Angeles area sat at $43.35, the lowest average since Q4 2020. As vacancies remain high, owners have offered lower rents to entice new tenants to sign leases.

21.69%

Availabilities

Total availabilities have dropped in Q3 2024, with 21.69% of office space being available. This represents nearly a 2% decrease from the previous quarter.

3.5m

Leasing activity

Office leasing activity in the Greater Los Angeles marketplace has maintained a low volume, with a total of about 3.5 million square feet of leases signed. This marks the third straight quarter of approximately 2 million square feet of Class A space leased, as owners continue to struggle to fill their vacant units.

18%

Vacancy

Total vacancy throughout the Greater Los Angeles office market is currently at a record high, with an overall average of 18% vacancy and a Class A average of 23.4%. As we continue to move away from the Covid-19 pandemic era, office occupiers have been shedding unused space as work-from-home policies have proven to be the norm.

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Get in-depth office market reports and insights from commercial real estate experts in the Greater Los Angeles area. Avison Young advisors look at LA's commercial real estate activities and the latest county statistics to provide you expert market research on LA's office properties.

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