Q1 2024 LA Office Market Report

The Los Angeles Metro office market remains volatile. Current net absorption for the first quarter of 2024 was negative 1.2 million square feet, bringing the 12-month net absorption down to negative 3.9 million square feet. Tri-Cities, West Los Angeles, Downtown Los Angeles, and Wilshire District contributed 1.7 million square feet of additional unoccupied space to their submarkets. The San Fernando Valley added the largest amount of positive net absorption in the first quarter with 261,859 square feet. Weaker leasing has been insufficient to offset the numerous tenants vacating or downsizing their office footprints, whether upon lease expiration or by putting space on the sublease market.

Overall, most of the submarkets remained relatively unchanged in rental rates with some modest growth overall from $3.75 to $3.84 per square foot per month, largely due to the West Los Angeles market increasing from $5.20 to $5.29 per square foot.

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