q2 2022 market reports

Leasing activity totaled 3.3M SF, falling short of the 3.8M SF in Q1. Net absorption was flat, keeping the overall vacancy rate at 20.3%. Sublease availability increased by 20 basis points to 4.2%. The average asking rental rate decreased over the quarter by 1.6%.

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

The availability rate in Downtown Los Angeles of 29.3% continues to be the highest of any Los Angeles office market.  Some occupancy growth in the CBD caused the overall vacancy rate in Downtown to decrease by 10 basis points to 23.7%.

West Los Angeles overall vacancy decreased by 20 basis points to 19.8% after reaching a peak high of 20% in Q1. Leasing activity in Q2 reached 1.5M SF, which was on par with the amount of activity in the previous quarter.

Hollywood/Mid-Wilshire posted the highest amount of net absorption in Q2 compared to any other major Los Angeles office market. It is one of the few markets with any overall vacancy rate lower than one year ago, down 20 basis points over year.