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Market Report

Los Angeles Office Market Report

2024 Investment Forecast

Despite Historically Elevated Vacancy, Local Offices
Outperform Handful of Other Markets

Media and post-production-related move-ins provide optimism. Office vacancy in Los Angeles County was near the 20 percent mark at the onset of this year, a byproduct of firms determining their long-term space requirements will be lower than previously believed. While 11 other major U.S. markets entered 2024 with higher Class A vacancy, nearly one-fourth of top-tier space is vacant locally. Fortunately, supply-side pressure is minimal this year, with no submarket slated to add more than 400,000 square feet — a first since 2014. Additionally encouraging, more media and post-production companies are moving into 50,000-square-foot-plus spaces this year, highlighted by TikTok, Sony Pictures, Penske Media Corporation and Fifth Season. Meanwhile, at nearly 15 percent, local Class B/C vacancy is far from the historical precedent as the segment’s rate has hovered between 10 and 14 percent since 2010. Optimism aside, overall vacancy will increase over the near-term, albeit at a more moderate pace, with the metro’s rate eclipsing the 20 percent threshold for the first time on record this year.
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