March 24, 2025
Los Angeles office availability has steadily risen since the onset of the pandemic and reached a peak of 28.3% by Q3 2024. The trend reversed in Q4 2024 as the availability rate decreased by 40 basis points and marked the first notable decline in four years. This shift was driven by a sustained reduction in sublease space on the market, which decreased for the second consecutive quarter after reaching a record high of 5% earlier this year. Leasing activity in Q4 2024 totaled 3.6M SF, bringing the annual total to nearly 14.5M SF. This was the highest annual activity recorded since the pandemic began but still 23.6% lower than the pre-pandemic total of 18.9M SF in 2019. Overall net absorption has been improving gradually, with each quarter in 2024 recording less occupancy losses than the previous one. Much of the recent significant lease transactions were focused on renewals and rightsizing efforts, which have limited more overall occupancy growth in Los Angeles. Although office availability is expected to decline further, it will likely remain elevated and historically high throughout 2025.
