Los Angeles Office Market Report

Metro continues to grapple with rising availability. Los Angeles County’s office sector entered 2026 with record-high vacancy. Challenges to property performance are evident across different facets of the marketplace, with CBD and suburban vacancy both around 20 percent and availability above 17 percent across all six of the metro’s largest submarkets. Fortunately, Class B/C demand has recently shown signs of improvement. Positive net absorption was noted in the segment during each quarter last year. Leasing activity may further improve if company formations related to professional services, finance, and insurance occur more frequently. The record number of high-propensity business applications — filings that have a high likelihood of becoming businesses with payroll — logged last year in California bodes well for this prospect, as Los Angeles County historically registers the most filings in the state. Moving forward, however, the metro is likely to face further hurdles. The ongoing decline in local film- and entertainment-related jobs may adversely impact demand for post-production and other creative office space, specifically in West Los Angeles and Burbank-Glendale-Pasadena.