q1 2022 market reports

Leasing has been picking up and Q1 finished with 3.5M SF of activity, 36.5% more than the 2.4M SF recorded in Q1 2021. Net absorption was negative 692,826 SF with occupancy losses in most office markets. Office vacancy surpassed 20% and overall availability reached 25.4%.
 

Map of the Base SF, Vacancy Rates, YTD Absorption, and Average Asking Rates of submarkets across the Greater Los Angeles Basin.

The Downtown Los Angeles availability rate of 29.8% continues to be the highest of any Los Angeles office market. There was an increase in vacancy across all Downtown submarkets over the quarter.

Major construction completions caused the overall vacancy rate to increase by 50 basis points over the quarter. Leasing activity reached over 1.4M SF in Q1, slightly lower than the pre-pandemic quarterly average of 1.6M SF in 2019.

 Hollywood recorded 137,992 SF of leasing activity in Q1, the highest quarterly amount since the start of the pandemic. Over 64% of the vacant office space in this office market is in Mid-Wilshire.