Los Angeles 2021 Q2 Market Report
In spite of California’s partial re-opening in June, most large firms have postponed opening their offices until after Labor Day and in some cases October. Overall market activity is increasing and landlords continued to see an uptick in property inquiries and tours. With that said, leasing activity is still predominantly made up of large enterprise companies in the entertainment and content sectors, like Apple, Hulu, Roku, and Amazon. Urban submarkets like Hollywood and Downtown Los Angeles are lagging, whereas areas like Culver City and East Santa Monica are experiencing high activity. Due to an increase in construction costs and materials, second-generation and/or plug-and-play opportunities are in high demand. Landlords are still offering record concessions but have remained somewhat bullish on rental rates. Positive signs towards recovery are evident, but the Delta variant and vaccination requirements will be monitored closely and will affect market fundamentals through the remainder of 2021.