Downtown Los Angeles Office Leasing Showing Signs of a Resurgence at the Start of 2024
The chart illustrates the tenant makeup by industry for recently signed leases in Downtown Los Angeles
Downtown Los Angeles (DTLA) office leasing ended 2023 on a strong note with a large uptick in leasing activity at the start of 2024, driven by professional service tenants. There was approximately 340,000 square feet of new leases signed between Q3 and Q4 of 2023 which is an increase of 76%.
Since the start of 2023 more than 85% of new leases signed are professional service tenants with the largest industry being finance (32%), legal (23%), and consulting (14%).
The uptick in lease activity resulted in a positive net absorption in Q4 2023 of approximately 142,000 square feet, which is more than 330,000 square feet from the previous quarter.
75% of the new leases signed were by existing DTLA tenants, while the remaining 25% of leases were by tenants who newly migrated to DTLA submarkets.
March 8, 2024
