Los Angeles 2020 Q2 Market Report
The effects of COVID-19 drastically reduced transaction activity in the commercial real estate industry during the 2nd Quarter. Occupiers put almost all real estate plans on hold due to uncertain economic conditions and Covid related occupancy issues. We expect this will likely continue for the foreseeable future. Over the coming quarters we expect to see landlords start to drop rental rates and add more concessions. The amount of sublease vacancy dramatically increased during the 2nd Quarter. A focus on cost reductions and uncertainty about how to safely reoccupy office space will continue to limit market velocity and contribute to increasing sublease availability.