Los Angeles Office Market Report

Distributed demand supports tightening. Five of the metro’s six largest office submarkets posted vacancy declines in the year ended June, led by drops of at least 60 basis points in West Los Angeles, South Bay, and San Fernando Valley. Distinct demand drivers supported each node, including law and finance in Century City and Beverly Hills, aerospace and defense in Torrance and Long Beach, and a broad mix of midsize tenants in the Valley. Downtown Los Angeles posted more modest compression amid persistent rightsizing and a broader shift away from concentrated footprints. The metro’s polycentric structure is encouraging firms such as KPMG, Deloitte, and Sidley Austin to split operations across multiple districts to reach dispersed employees and clients.