Office Leasing in Los Angeles Sees Post-Pandemic High
Leasing Activity on the Rise
Office landlords across Los Angeles have inked deals for 3.8 million square feet during the third quarter, the highest since the dawn of the pandemic four years ago. According to an analysis by Savills, this represents a 27 percent boost in leasing activity year-over-year.
Availability Rate on the Rise
Despite the surge in leasing activity, the rate of office availability in L.A. is still on the rise. Availability jumped 0.9 percent to 28.3 percent from the previous period, and 1.8 percent year-over-year.
Average Rent Remains Flat
Average monthly asking rents for offices remained flat at $3.90 per square foot, though asking rents for Class A offices rose 1.7 percent year-over-year with a "flight to quality" in Century City and across Southern California.
Cautious Optimism
The rise in leasing activity has ignited cautious optimism that demand for offices is returning to L.A., even as office-using employment growth in the region, particularly in the tech and entertainment industries, has fallen over the past year, according to Savills.
Notable Office Deals
Notable office deals over the summer included a lease by Southern California Gas Company of 198,600 square feet at 350 South Grand Avenue, and a lease by JPMorgan Chase of 162,700 square feet at 2029 Century Park East in Century City.
Conclusion
The Los Angeles office market is showing signs of recovery, with leasing activity reaching a post-pandemic high. While the availability rate is still rising, the surge in leasing activity suggests that demand for offices is returning. However, the market will be closely watched to see if this recovery is sustained.
FAQs
Q: What is the current state of office leasing in Los Angeles?
A: Office leasing in Los Angeles has reached a post-pandemic high, with 3.8 million square feet of space leased during the third quarter.
Q: What is the current availability rate of office space in Los Angeles?
A: The availability rate of office space in Los Angeles is 28.3 percent, a 0.9 percent increase from the previous period and a 1.8 percent increase year-over-year.
Q: What is the average monthly asking rent for office space in Los Angeles?
A: The average monthly asking rent for office space in Los Angeles is $3.90 per square foot, with Class A offices asking for an average of $4.30 per square foot.
Q: Are there any notable office deals that have been signed recently?
A: Yes, notable office deals include a lease by Southern California Gas Company of 198,600 square feet at 350 South Grand Avenue, and a lease by JPMorgan Chase of 162,700 square feet at 2029 Century Park East in Century City.
