Downtown Los Angeles office market report
Q1 2025
In Q1 2025, the Downtown Los Angeles office market showed early signs of stabilization, with total availability declining to 31.8% and positive net absorption reaching 602,000 square feet—the strongest quarterly gain in over a decade. This surge was driven not by tenant expansion but by major owner-user acquisitions, including LA County’s purchase of 555 West 5th Street. Asking rents continued their upward trend, rising to $49.44 per square foot annually due to escalating operating costs. While leasing activity remained modest, the combination of steady renewals and reduced availability suggests cautious optimism for the year ahead.
Rental rates
Office rental rates in Downtown Los Angeles continued to rise moderately in Q1 2025, marking the third consecutive quarter of growth.
Availability
Downtown Los Angeles began 2025 with total office availability at 31.8% at the close of Q1, reflecting a 140 bps decrease from the previous quarter.
Net absorption
Q1 2025 net absorption showed a surprisingly strong figure of 602k of positive net-absorption – this highest quarterly figure in over a decade.
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