Los Angeles Office Market Report
Tides Shift Positively in Silicon Beach,
Yet Outlook for Office Sector Remains Foggy
Market recovery hits some roadblocks. After recording positive net absorption in each of the last three quarters of 2021, Los Angeles County's office market encountered a setback during the initial months of this year. Signaling an extended transitionary period, vacant stock expanded by nearly 2.6 million square feet during the first quarter of 2022. This increase placed vacancy at a record mark, with availability historically high across property tiers. Additional upward pressure is expected in the near term as tenants continue to evaluate their space requirements amid longer-term adoption of hybrid and remote work models. Nevertheless, a positive has emerged for most locales. Apart from West Los Angeles, submarkets are slated to add an average of just 200,000 square feet this year, a boon for properties with vacant floor plans and available sublease space.