Los Angeles 2021 Q1 Market Report
With over half the U.S. adult population receiving at least one COVID-19 vaccine shot, the U.S. economy is starting to see positive signs of improvement heading into the summer. As COVID-19 related restrictions are easing, flexible office space solutions are increasingly becoming a key driver for companies’ short- and long-term strategies to return their workforce to the office place. However, office leasing activity will continue to lag the economy and public markets, even as companies begin to implement their plans to re-occupy office space. On a positive note, office property inquiries and tours increased during Q1 2021. Online streaming, entertainment, and gaming companies continue to lead most of the demand on the Westside. Demand for industrial space remains strong due to the growing ecommerce and aerospace industries. While Landlords remain bullish about their asking rates, they continue to increase concessions in an effort to attract prospective tenants. Q2 2021 office market fundamentals will continue to be tracked closely as the vaccine rollout and financial stimuli packages take effect.