Los Angeles office leasing is off to an expected slow start in 2021
Despite larger leases signed by Beyond Meat and the County of Los Angeles in El Segundo and Torrance, respectively, office leasing totaled just 2.0 million square feet (msf) in the first quarter of 2021 as the pandemic continues to limit activity in the market. This was lower than the 2.1 msf of leasing activity reported in Q4 2020, down 49.1% from the 4.0 msf of leasing activity reported in Q1 2020, and down 42.4% over the previous 5-year quarterly leasing average of 3.5 msf. As Los Angeles continues to relax COVID-19 restrictions and mass vaccination is now underway, space touring has increased, and leasing activity is expected to follow as the year goes on. Tenant options will remain abundant as the market continues to see a rise in both sublease and direct availabilities.