Office leasing activity continues to recover but full return to the office remains elusive
In the third quarter 2021, office leasing activity in Los Angeles continued to recover by increasing to 3.2 million square feet (msf). This was a 103% increase over leasing activity of just 1.6 msf reported a year ago, but remains 20% below the 4.0 msf of leasing activity reported in Q1 2020. With the Los Angeles economy now largely reopened, leasing activity is expected to increase, however, a full office market recovery will remain slow and uneven, and largely dependent on the path of the coronavirus. In addition, and as mentioned in previous reports, the effects of work-from-home (WFH) policies on office space demand will continue to provide long-term uncertainty as hybrid workplaces appear to be more common moving forward.