Metro vacancy aligns with national average. Amid a tight labor market, Los Angeles’ collection of media, entertainment, tech and aerospace firms continued to expand last year, with many companies occupying additional or larger floor plans. These organizations’ actions boosted absorption, reducing the metro’s vacancy to a cycle-low level. Limited availability coupled with record asking rents prompted an uptick in construction, with developers slated to finalize more than 4 million square feet of office space in 2020, the third largest total among major U.S. metros. Downtown Los Angeles, West Los Angeles and Mid-Wilshire will each welcome more than 1 million square feet this year, likely placing short-term pressure on local vacancy rates despite encouraging pre-leasing. Outside these submarkets, tenant demand will outpace development, allowing county vacancy to withstand the influx of new supply and remain constrained.