LA Office Market: Q2 Recap and Insights
Here’s what we’re seeing in real time - from current data, live transactions, and on-the-ground activity across Greater Los Angeles.
Availability Is Up. That’s Your Leverage.
Overall availability across Greater LA stands at 28.6%.
West LA: 31.2%
Downtown LA: 32.1%
Translation: Nearly 1 in 3 office spaces is currently being marketed for lease. It remains one of the most tenant-favorable environments we've seen in the past two decades. Landlords are VERY motivated.
Asking Rents Are Flat, But Incentives Tell a Different Story
Gross asking rents across Los Angeles average $3.64/SF/month, relatively unchanged year-over-year.
However, that number hides the real story. Landlords are offering:
Extended free rent (in some cases 12+ months on longer terms)
Generous tenant improvement (TI) packages
Flexible commencement dates and termination rights
➥ Strategy Tip: The real deal is in the net effective rent, not the sticker price. That’s where meaningful savings are found.
Sublease Market: Still a Factor, But Beginning to Ease
Sublease availability across LA is now approximately 5.9 million SF, with the highest concentrations in West LA and Downtown.
While overall sublease inventory is gradually softening, many listings are still:
Move-in ready
Fully furnished and wired
Priced well below direct deals — often $1.00 to $2.00/SF/month under asking rates on direct deals
➥ Strategy Tip: Even if you’re not pursuing sublease space, it’s impacting landlord posture across the board. Use it to create leverage in direct negotiations.
Recent Sales Reflect the Market’s Real Value
A standout transaction: 400 & 600 Corporate Pointe in Culver City sold for $160/SF, a 45% decline from 2015 values.
That price is nearly equivalent to what many tenants are investing in high-end buildouts. The takeaway?
Buildings are trading at historic discounts. That signals where rent and leverage are trending.
➥ Strategy Tip: Use recent sale comps to challenge landlord valuation assumptions.
Rent directly affects building value (via cap rate math). If rent drops, valuations follow, and so does their pricing flexibility.
Q2 2025 Market Snapshot
Office availability across Los Angeles held steady this quarter at 28.6%, with West LA and Downtown LA slightly higher at 31.2% and 32.1%, respectively. Average asking rents remain at $3.64 per square foot (full service gross). Sublease space continues to weigh on the market, with nearly 5.9 million square feet still available. While leasing activity saw a modest uptick, conditions continue to favor tenants.
Final Word
Availability is high. Landlords are flexible.
We continue to operate in a high-supply, high-concession market. One that favors proactive tenants who prepare early, negotiate hard, and understand how to use timing to their advantage.
Whether you’re 6 months or 18 months out from a lease decision, this is the window to pressure test your position and explore your options.
If you’d like a tailored submarket report or early access to furnished, discounted subleases, we’re here to help.