Los Angeles office market reports

Q1 2022

The Los Angeles office market continues to experience a positive increase in touring activity at a slow but steady pace to start the year from tenants that had previously held off their office leasing search due to the COVID-19 pandemic. Employers are now eager to capitalize on the generous concession packages and flexible terms offered by landlords to accommodate their return-to-work policies.

363 msf

Inventory

An increase in deliveries during the coming years will cause this number to increase as developers continue to expand on new developments throughout the various submarkets. At the end of the first quarter, the office development pipeline for Los Angeles totaled 33 properties for 4.5 million square feet.

-697 ksf

Net Absorption

Los Angeles experienced quarter-over-quarter negative absorption as companies downsize and new space is being delivered to the market. There was positive absorption reported for the first time in 6 quarters of over a million square feet in Q4 2021.

$3.39 psf

Direct Asking Rent

Asking rents appear to have increased by 1.2% since the beginning of 2021 and averaged $3.39 psf on a full services basis at the end of the Q1 2022.

69.5 msf

Availabilities

The total available office space checked in at just under 70 million square feet for the Los Angeles area at the end of Q1 2022. Concession packages have become more generous in recent months, the latest indication of tenant-favorable market conditions.

15.4%

Vacancy

Vacancy increased by 50 basis points in Q1 and is beginning to stabilize. We are also witnessing increased tour velocity in most submarkets. The direct vacancy rate and the sublease vacancy rate both increased to 14.1% and 1.4% of the total market inventory respectively.

$895 mm

Investment Sales

The average sales price for the transactions in Q1 2022 was $362 psf. There is suppressed investment volume in the office sector as investors have deployed capital in other asset types such as multifamily and industrial.

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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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