Los Angeles office market report

Q1 2024

The Los Angeles office market remained in the red in Q1 2024 as the office sector continues to struggle. Occupiers have reassessed their office holdings and continue to make decisions on best office space utilizations for their needs, which have caused many to relinquish unused or excess space. The percentage of remote job postings has cooled to a rate of 7%, down from a previous high of 11% in Q3 of 2023. Los Angeles’ unemployment rate sits at 5.4%, which is 70 bps higher than the post-pandemic low set in September of 2022. On a positive note, rental rates have remained stable and leasing activity is up compared to Q4 of last year.

274.6 msf

Inventory

The Los Angeles office market currently has 2.08 million square feet under construction, with an average delivery date in April of 2024

(0.5%)

Net absorption

Net absorption as a percent of inventory ended the quarter in the red, making it three straight quarters of negative absorption.

$42.98 psf

Direct asking rent

Average asking rates have remained relatively stable, increasing slightly to $42.98/SF in the first quarter. Many landlords continue to offer generous concession packages in lieu of decreasing rental rates.

77.0 msf

Availabilities

Total availabilities continue to rise, with direct availabilities continuing its steady incline to the highest rate it has been in over eight years.

19.9%

Vacancy

Total vacancies registered at 19.9%, down slightly from Q4 2023.

$286 psf

Investment sales

Price per foot came in at $286 on just over $100mm of sales volume.

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Get in-depth office market reports and insights from commercial real estate experts in the Greater Los Angeles area. Avison Young advisors look at LA's commercial real estate activities and the latest county statistics to provide you expert market research on LA's office properties.

Explore different topics like the latest office market pricing trends and analysis of Los Angeles's current office real estate market conditions. Gain a better understanding of Los Angeles’s office real estate outlook and stay ahead of current office space trends. Make smart decisions when it comes to investing in office properties in LA's competitive office real estate market. Avison Young is your trusted source for commercial real estate office market insights in Los Angeles.

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