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Los Angeles 2022 Q2 Market Report

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Leasing activity down 20% from last quarter as economic uncertainty returns at mid-year 2022

Despite several large leases signed in the second quarter 2022, total Q2 leasing activity in the Los Angeles office market was just under 2.8 million square feet (msf), down 20% from the 3.6 msf of total leasing activity reported in the first quarter. While this could be a seasonal mid-year slowdown as deal activity tends to spike towards the end of the year, uncertainty in the overall economy has returned due to the Federal Reserve raising interest rates to fight inflation. With several anecdotal examples of deals falling out of contract by the end of the quarter (mostly from the technology sector) and other active requirements now on hold, the Los Angeles office market enters the second half of 2022 with more questions, none of which involve COVID-19.

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