Los Angeles Office Market Reports | Avison Young US - Los Angeles

Los Angeles office market report

Q2 2023

The Covid-19 pandemic has had lingering effects on the Los Angeles office market. Occupiers have faced challenges in implementing a return-to-office strategy, in which some occupiers have chosen to adopt a hybrid or fully remote work schedule for their employees. Moreover, high interest rates and owner pessimism over the future of the office market has continued to drive sales activities downward. Despite the current state of the office market, many landlords have offered generous concession packages in lieu of decreasing rents.

3.1 msf

Inventory

2023 has seen 3.1 million square feet of new office construction underway in Los Angeles, with 701,562 square feet delivered.

-726k sf

Net Absorption

There has been 726,587 square feet of negative absorption so far in 2023, trending to be the best absorption rates in Los Angeles since 2019.

$43.58 psf

Direct Asking Rent

The Los Angeles office market concluded the second quarter with average asking rents at $43.58/sf, which is down only 0.8% from the year prior.

23.2%

Availabilities

There is currently 69.7 million square feet of available space in Los Angeles, representing 23.2% of the office market. This continues the upward trend of availability since the pandemic. Of the total availability, 11 million square feet is available for sublease.

18.9%

Vacancy

Total vacancy this quarter registered at 18.9%, with 16.7% direct and 2.2% sublet.

$968M

Investment Sales

Total sales volume in Q2 2023 came in at $968 million, signaling a decrease from previous years.

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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.

Explore different topics like the latest office market pricing trends and analysis of Los Angeles's current office real estate market conditions. Gain a better understanding of Los Angeles’s office real estate outlook and stay ahead of current office space trends. Make smart decisions when it comes to investing in office properties in LA's competitive office real estate market. Avison Young is your trusted source for commercial real estate office market insights in Los Angeles.

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