{"id":1004791883,"date":"2025-12-23T01:01:00","date_gmt":"2025-12-23T09:01:00","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004791883"},"modified":"2026-03-18T01:22:01","modified_gmt":"2026-03-18T09:22:01","slug":"los-angeles-office-sector-holds-strong","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/los-angeles-office-sector-holds-strong\/","title":{"rendered":"Los Angeles’ Office Sector Holds Strong"},"content":{"rendered":"
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\"Exterior<\/a>
Figueroa at Wilshire, a 1 million-square-foot tower in Los Angeles\u2019 Financial District, changed hands in June. Image courtesy of Newmark<\/em>
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Los Angeles’ office fundamentals showed signs of stabilization in October, according to Yardi Matrix data, as the sector continued its transformation. The metro performed well yet again across several key metrics.<\/p>\n\n\n\n

The City of Angels’ office vacancy rate was one of the lowest nationwide in the 10th month of the year. The metro also retained the top spot in the U.S. for rising rents while maintaining a steady leasing momentum. Meanwhile, its coworking sector continued to expand<\/a>.<\/p>\n\n\n\n

Despite a sharp decline in construction starts, Los Angeles’ development pipeline remained among the nation’s largest. And investor activity reached $2.2 billion year-to-date, the metro’s sale prices surpassing once again the national average.<\/p>\n\n\n\n

Listing rates growth, falling vacancy mark gradual recovery<\/h2>\n\n\n\n

Los Angeles\u2019 office vacancy rate stood at 14.6 percent in October, marking a 120-basis-point year-over-year decline. The index also was 400 basis points below the national average of 18.6 percent.<\/p>\n\n\n\n

In fact, the metro\u2019s rate ranked fourth among the lowest in the nation. Manhattan led at 13 percent, followed by Miami (13.4 percent) and Tampa, Fla. (14.2 percent). San Francisco (26.1 percent) and Seattle (27.4 percent) were at the opposite end of the spectrum.<\/p>\n\n\n

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\"Aerial<\/a>
The Collective comprises five buildings totaling 204,724 square feet. Image by Lawrence Anderson, courtesy of Tishman Speyer<\/em><\/figcaption><\/figure><\/div>\n\n\n

Average asking rents reached $46.62 per square foot, exceeding the national average of $32.81 per square foot. The metro’s listing rates witnessed a 10.4 percent rise year-over-year, the highest in the U.S.<\/p>\n\n\n\n

Among gateway markets, Manhattan led at $67.97 per square foot, followed by San Francisco ($65.30) and Miami ($56.34). Chicago remained the most affordable office market, at $28.12 per square foot.<\/p>\n\n\n\n

In one of the metro’s major leases, Spin Master committed to 132,300 square feet<\/a> at The Collective, a five-building office campus owned by Tishman Speyer. The children entertainment company will move to the new location next November.<\/p>\n\n\n\n

More recent deals included Canvas Worldwide\u2019s 68,301-square-foot lease<\/a> at 2330 Utah Ave. in El Segundo, Calif., nearly doubling its footprint in the metro. The independent media agency will relocate its West Coast headquarters to the NSB Associates-owned property in the first half of 2026.<\/p>\n\n\n\n

Office sales and pricing keep L.A. competitive<\/h2>\n\n\n\n

Investment activity in Los Angeles amounted to approximately $2.2 billion year-to-date through October, placing the metro on the fifth spot among the top 25 U.S. markets. Among its peers, the City of Angels ranked third after Manhattan ($6.4 billion) and Washington, D.C. ($3.6 billion), while San Francisco ($1.2 billion) occupied the fourth position.<\/p>\n\n\n

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\"Exterior<\/a>
Completed in 1987, the three-story Maple Plaza underwent cosmetic renovations in 2017. Image by Lawrence Anderson, courtesy of Tishman Speyer <\/em><\/figcaption><\/figure><\/div>\n\n\n

Los Angeles office space<\/a> traded at $251 per square foot, well above the national average of $191 per square foot. This positioned the metro fourth among gateway markets. For context, Manhattan\u2019s sale prices stood at $523 per square foot, followed by Miami ($360) and San Francisco ($279). At the other end of the spectrum was Chicago, where assets sold for just $64 per square foot.<\/p>\n\n\n\n

As of October, the largest office transaction in the metro was Uncommon Developers\u2019 $210 million purchase<\/a> of Figueroa at Wilshire, a 52-story tower in the Financial District. Brookfield Properties sold the 1 million-square-foot asset in June, at a 41 percent discount from its previous $356.7 million trade.<\/p>\n\n\n\n

Another significant transaction was the $205 million sale of Maple Plaza<\/a>, a 290,000-square-foot office building in Beverly Hills, Calif. Kilroy Realty Corp. acquired the property from Tishman Speyer, which had purchased it in 2005 for $101 million.<\/p>\n\n\n\n

Pipeline holds steady as construction starts plummet<\/h2>\n\n\n\n

As of October, Los Angeles\u2019 office sector had nearly 2.6 million square feet of competitive space under construction across 12 properties, representing 0.8 percent of its existing stock\u2014slightly above the national average of 0.7 percent.<\/p>\n\n\n\n

The metro had the fourth-largest pipeline among peers, with Boston leading at 5.6 million square feet, followed by Manhattan (3.3 million square feet) and Seattle (2.7 million square feet). By contrast, Washington, D.C., continued to post the smallest pipeline, with only 761,971 square feet underway.<\/p>\n\n\n\n