Increased leasing activity indicates a slowly recovering office market led by technology firms and content creators
At year-end 2021, Los Angeles office leasing activity increased to a quarterly pandemic-high of 3.6 million square feet (msf). This brought total 2021 leasing activity up to 11.9 msf, up 25% from the 9.5 msf in leasing activity reported in 2020 but still down 34% from the 18.0 msf in leasing activity reported in 2019 and down 18% from the 14.5 msf in leasing activity reported in 2018. Despite the overall Los Angeles economy now reopened, a more robust office market recovery continues to depend on the path of the coronavirus as many workers remain at home, especially in light of the recent Omicron variant at year-end. Nevertheless, now more than ever the primary drivers of office space demand in Los Angeles are technology firms and entertainment/media companies heavily involved in content creation