Total availability rate increases to an all-time high of 25.4% despite uptick in leasing activity
After just 2.8 million square feet (msf) of leasing activity was reported in the second quarter 2022, leasing activity in the Los Angeles office market increased by 13% to 3.1 msf in the third quarter 2022. Led by a combination of law firms and professional services companies who have become active again as local technology startup activity has pulled back, leasing activity has increased over last quarter, although it remains below the 5-year quarterly average of 3.3 msf. Uncertainty in the overall economy has returned despite a tight labor market and the local unemployment rate being back to historic lows. With the economy reopened, expect many occupiers continue to enact return-to-office policies with the understanding that the hybrid workplace is also now here to stay.