West Los Angeles office market reports

West Los Angeles leasing activity totaled roughly 1.2 million square feet in Q2 2026, extending the market's four consecutive quarters above 1.0 million square feet. While overall leasing volume has moderated, occupier demand remains centered on Class A assets, supported by one of the narrowest rent spreads between Class A and Class B space in recent years. The favorable cost of upgrading continues to drive flight-to-quality leasing, with tech, media, and professional service tenants prioritizing premium workplaces in top locations.

West Los Angeles recorded a negative net absorption of 260,073 square feet in Q2 2026, reversing gains from the prior three quarters. Absorption activity remained concentrated in Beverly Hills, Marina del Rey/Venice, and Century City, with demand led by tech, media, and professional services tenants focused on high-quality office space. This marks the first quarter of negative absorption since Q2 2025. Despite softer fundamentals, demand remains increasingly selective and quality-driven heading into the second half of 2026.

Commercial lending across West Los Angeles has slowed sharply entering mid-2026, with year-to-date origination volume reaching $476 million. Economic pressures associated with Measure ULA transfer taxes and elevated interest rates, along with persistent vacancy in newer office assets, have contributed to more selective investor behavior and a decline in overall lending activity. As a result, activity has shifted toward smaller, more financeable office transactions. The remainder of 2026 is expected to be subdued, with any recovery contingent on lender confidence and rate stability.