Los Angeles office market report

Q4 2023

The Covid-19 pandemic continues to have lingering effects on the Los Angeles office market. Occupiers have reassessed their office holdings and continue to make decisions on best office space utilizations for their needs, which have caused many to relinquish unused space. While Los Angeles has recovered most of the office using jobs lost during the pandemic, the share of remote postings as of October 2023 is at 11.39% as companies adopt work from home policies.

290.9 msf

Inventory

Buildings 50,000 square feet and above, the Los Angeles office market currently has 2.3 msf under construction.

(0.6%)

Net Absorption

Net absorption as a percent of inventory ended the year in the red, making it two straight quarters of negative absorption.

$42.97 psf

Direct Asking Rent

Landlords continue to offer generous concession packages in order to attract new occupiers. Recently, rates have slightly pulled back to $42.97/sf.

70.0 msf

Availabilities

Total availabilities remained at high levels at 70.0 msf. Sublet availabilities have decreased, down 3.3% from the prior quarter.

20.7%

Vacancy

Total vacancies registered at 20.7%, up 60 basis points from the prior quarter.

$247.32 psf

Investment Sales

The Los Angeles office market saw a total sales volume of $2.2B in 2023 with an average sale price of $247.32 per square foot.

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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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