Los Angeles Office Market Report
Reasons for Optimism Emerge as Timelines for Office Homecomings Become More Concrete
Major employers plan early 2022 return. Los Angeles County entered the second half of 2021 with its highest vacancy rate since at least 2007 as availability sits above 20 percent in downtown and Silicon Beach. Near term, office vacancy is poised to remain historically high as the emergence of COVID-19 variants has altered reopening plans for many companies including tech and production firms that anticipated a return to in-office operations in September or October. However, longer term the outlook is brighter. Despite businesses reducing their office footprints, major employers within the tech, media and aerospace sectors are not leaving the area. Additionally, employee vaccination requirements adopted by the Big Five tech corporations and major studios including ViacomCBS and Disney increase the likelihood of a full-scale return to in-office work early next year.