Downtown Los Angeles office market report
Q1 2024
In Q1 of 2024 we saw rental rates and vacancy rise, but more interestingly 777 S Figueroa was set to sell for $145/PSF, to Concus Asset Management, but it was reported that the buyer pulled out of the deal for the 1M+ SF property. On a quarter over quarter basis, office leasing activity rose 25% with 285K SF leased in Q1 ’24 compared to 227K SF leased in Q1 ’23.
Rental rates
Office rental rates have slightly ticked up to over 48 dollars per square foot compared to $46.00 in Q1 ‘23. Due to increases in Opex, Downtown Los Angeles Tenant Improvement Allowances have remained firm at $120/SF for a 10+ year term. Rental Abatement and TI allocations have remained constant, year or year, with 12 months for a 10+ year term.
Office supply
Overall vacancy in Greater DTLA’s 46M SF registered at 29.20% at the end of the first quarter, up 100 bps from Q1 ’23. Within the approximate 30M SF in the Central Business District, overall vacancies registered at 29.1%, a year over year increase of 270 bps (26.4% Q1 ’23).
Office demand
Leasing activity increased in Q1 with 284,859 SF of activity compared to 227,782 SF from Q1 of 2023.
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