Greater Los Angeles Office Figures Q4 2023

January 10, 2024 10 Minute Read

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‒ Leasing activity decreased 4.2% quarter-over-quarter, as companies continued to reevaluate their office requirements amidst murky economic conditions and structural changes in office demand.
‒ The most leasing activity occurred in the West LA and South Bay submarkets which accounted for 53% of total activity combined in Greater Los Angeles (GLA).

‒ Vacancy increased by 60 basis points (bps) quarter-over-quarter and 270 bps year-over-year, achieving a historic high of 21.9%.

‒ Q4 2023 is GLA’s 6th consecutive quarter of negative net absorption.

‒ The average asking rate decreased by $0.02 quarter-over-quarter. However, GLA has seen a $0.07 increase in asking rates year-over-year as tenant preferences have shifted towards higher quality, Class A office space.

‒ Landlords continued to offer heightened concessions in order to drive leasing activity.

‒ Sublease availability has reduced 10 bps, both quarter-over-quarter and year-over-year, as a result ofincreased leasing activity.