Figure
Los Angeles Office MarketView Insert Q1 2021
January 21, 2021
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- Widespread vaccinations may enable economic normalization by mid-year, and increased touring activity is an encouraging indicator for the office market.
- Landlords have not let up on asking rates, turning to concessions and incentives to attract occupiers. Average asking rate climbed slightly with Los Angeles County rates at $3.90/sq. ft./month FSG and Greater Los Angeles rates at $3.79/sq. ft./month FSG
- Occupiers continued to list large amounts of space for sublease, with availability increasing by 720,000 sq. ft. in Q1, over 340,000 sq. ft. of which is vacant. Sublease availability totals 7.4M sq. ft. compared to 3.8M sq. ft. in Q1 2020.
- Three buildings delivered this quarter for a total of 888,803 sq. ft., contributing to 830,859 sq. ft. of positive net absorption. Across the region, 6.2 million sq. ft. of office space is under construction, 40.5% of which is preleased