Office leasing spikes as economy reopens, though still below pre-pandemic level

In the second quarter, large and high-profile leases signed by Hulu, CAA, and Snap caused office leasing activity to increase to 3.1 million square feet (msf). This was a 55.1% increase over the 2.0 msf of leasing activity reported in the previous quarter but still down 21% from the 4.0 msf of leasing activity reported in the first quarter 2020, as well as down 10.1% from the five-year quarterly average of 3.5 msf. As the Los Angeles economy is now reopened, there is cautious optimism that leasing activity will continue to increase as occupiers return to the office. However, with the long-term effects of flexible and hybrid work policies on office space demand still unfolding, and the market facing record-high availability, it appears that recovery will be slow and uneven.

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