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The Los Angeles office space market is spread over a wide area from the Pacific Ocean on the west, San Gabriel Valley to the east, Ventura County to the north, and the South Bay to the south. There are over 215 million square feet of office space within the LA metropolitan area of which only approximately 15% is located in the Downtown Central Business District. There are a broad range of office types available from woody walk-ups to the most modern high rises. Having a an understanding of the different office markets and types within Los Angeles, can make a huge impact on the outcome of your search for office space.

That is what we do. We have LOCAL office space specialists all over the Los Angeles area who know their markets inside and out. We have pre-qualified them to ensure you get exceptional service. They will guide you through the maze of office space alternatives and make sure you fully understand the impact each option can have on your business. It really does not make any sense for you not to take advantage of the services of one of our great local tenant representatives. It won't cost you anything to have on your side. In fact, they will save you money with their knowledge and experience in the market by identifying opportunities that may not be readily available and then negotiate the best possible deal for you. They are in their office market every day and know not only the properties, but the players as well. It is a no lose proposition for you. There is no obligation for giving us a chance to prove ourselves.

To get started, all you need to do is complete the form at the top of the page. Just tell us a little bit about what your office needs are and how we should contact you and we will have one of our top LOCAL specialist get back to you right away. We know you don't want to wait for information. You want it now. So, we will do our best to get back to you just as soon as we can with the information you want.

A little more about the geography of the Los Angeles office space market. The market is divided up into many submarkets. Here are some of the more popular ones you may want to consider:

Los Angeles-Beverly Hills - High-end office space and medical buildings, near hospitals, high end retail, abundant amenities.

Los Angeles-Century City - High-end office space and medical buildings located in area with large high end shopping mall and condos, walkable with numerous amenities.

Los Angeles-Downtown/CBD - A mix of creative and traditional office spaces in mid to high rise buildings, renaissance redevelopment and rehabilitation in progress, in high demand for creative and traditional office use, good public transportation and accessibility, walkable downtown with abundance of world class amenities

Los Angeles-San Fernando Valley - Lots of industrial, creative and traditional office space, low to mid rise buildings, less expensive available parking, low to mid-range rates, quick access to freeways

Los Angeles-South Bay - Generally low rise office building, often stand-alone buildings, creative and traditional office suites, amenities include good retail and dining.

Los Angeles-West LA - A mix of creative and traditional office buildings, density populated, centrally located to most parts of greater LA area, located between Beverly Hills and Santa Monica with generally lower rates than surrounding areas, good freeway access, in-progress Metro Expo Line and good retail and dining amenities.

Burbank – Mid-priced offices spaces, low and high rise buildings, good tax incentives for businesses, close to Hollywood area, area ideal for production, design, media companies, quick access to freeway and metro rail, walkable downtown area with excellent amenities.

Culver City - Many creative spaces, generally office rental higher rates, arts and media district, in high demand for production, design, tech and media companies, walkable downtown area with wide range of amenities, metro line and freeway access.

El Segundo - Located close to airport, lower side for rates, industrial and office space, conveniently located in close proximity to range of retail, dining and entertainment, good freeway access.

Glendale - Has lower rental rates than neighboring Burbank, smaller walkable downtown area with both low and high rise buildings. A hospital is located in Glendale. There is easy freeway access and overall good general amenities on the Glendale area.

Marina Del Rey - mixed use spaces, creative, traditional and medical offices, mostly low rise buildings, wide range of amenities, adjacent to Santa Monica.

Pasadena - smaller walkable city adjacent to Los Angeles, close proximity to downtown Los Angeles, low to high rise buildings, mid to higher end rates, good public transportation and accessibility, Metro Line, great restaurants and retail.

San Fernando Valley - retail, office and industrial use, low to mid rise buildings, stand-alone buildings, good parking availability, diverse large area, good freeway accessibility .

Santa Monica - currently known as Silicon Beach, located in the Westside of Los Angeles, home to over 500 tech startup companies, second largest tech hub in the world. Creative spaces small to large, high end rates. Also ideally suited for Production, Design, and Media Companies. Many world class hospitals in the area. Abundance of wide range amenities, in high demand for all kinds of businesses, walkable downtown and in-progress Metro Expo Line.

Torrance - low to mid rise buildings, business parks, mid-range rates, diverse mix of office , use, lower parking rates, freeway accessible, within close proximity to diverse amenities.

Woodland Hills - Contains low to mid rise office buildings including stand-alone buildings, with retail, business parks, excellent parking availability, good freeway access, wide range of amenities.

If you would like more information or if we can help you with your office space in Los Angeles or the surrounding submarkets, please let us know.

Los Angeles Office Space Markets

If you're considering moving to the greater Los Angeles metropolitan area, one of the most important things to look at is the office  leasing market. You will likely find that one or more specific areas best fit your budget, staffing needs, or other key factors. 

An Overview of Los Angeles

The size of this city is one of the most striking and obvious things about it. It and its metropolitan area cover almost 470 square miles. It also has a huge population, coming in as the second-most populated area of the United States. There are more theaters and museums here than anywhere else in the United States, and of course, it is home to Hollywood and other major entertainment centers. This brings it media attention, and with it, plenty of tourists.

Opportunities for personal entertainment abound. There are three huge and highly visited amusement parks, teams for every major sport, including the WNBA, and many shopping centers.

All of these things make LA a very unique region, and have practical effects on the leasing market. Vacancy is typically low, and companies jockey for space within this coveted location. The same is true for residential space, so salaries need to be robust enough to account for this in order to attract employees.

History

It seems amazing now, but Los Angeles began life as a mere riverside camp site. Two years later, in 1771, missionaries built a permanent residence, and 10 years later, it became a settlement with the unwieldy name of El Pueblo de Nuestra Señora la Reina de los Angeles. By 1840, it was already Southern California's largest town. The movie industry came in 1900, and by the '30s, it had acquired the nickname "Tinseltown."

Currently, the Los Angeles area is home to people with all skill levels and economic statuses. Overall, there are more college graduates here than average, but there are also more people below the poverty line than in many other places. People from over 140 different nations live here, and over 224 languages are spoken. This makes it one of the most ethnically diverse places on Earth.

Despite a few high-profile racial incidents over the last few decades, this area has made great strides in this area. Now, it is a highly-cosmopolitan and inclusive area, and its highly diverse population gets along well.

Within the city limits, the population is almost 4 million, but when the entire metropolitan area is considered, the number jumps to 10 million.

Los Angeles Office Space Submarkets of Interest

Venice - This area is expected to see some softening thanks to Snap, Inc. moving out and releasing 163,000 square feet of subleased space.

Century City - Space may become available here thanks to a proposed acquisition by Fox. It is unknown whether this deal will go through, so those interested should keep an eye on it.

West LA - Large media, tech, and entertainment companies are filling up space here, driving rents to over $5.00 per square foot.

Hollywood/Wilshire Corridor - Rents here aren't cheap, with prices over $3.00/sq. foot being common, but the high cost of West LA is driving many companies to move here.

South Bay - Prices averaging $2.81/sq. foot are reported, making this a great choice for companies that want to be in the area, but don't feel a strong need to be in Hollywood or West LA. One of the reasons for the relatively low cost is that this is the fifth consecutive quarter of negative absorption, with Toyota and Kyocera being the latest to vacate. However, this trend is expected to reverse at the end of the year, so it could be a good idea to lock in deals here before that happens.

Downtown LA - Technology companies are moving into this area in droves. They're also coming to West LA and the South Bay. This is part of an effort to build a "Silicon Beach" zone.

The Financial District - This area has plenty of upper-class, hip residents. It is also home to plenty of banks, real estate companies, and investment firms.

The Labor Market

Overall, unemployment is down here, as it is across the state and nation. This is affecting all industries, but a few are creating more jobs than others. Hospitality, leisure, education, and heath services are topping the list for jobs produced in the last quarter. Financial services are up as well, but there has been a slight contraction in the legal services and information categories. Most of the jobs lost in the information category were related to sound recording, print publishing, and motion picture recording.

Because of the general tightness of the labor market, wages can be expected to rise. Depending on your business, this can be a good thing - it will make it easier to find customers at the retail level. However, you will likely want to streamline operations to keep labor costs down.

Office Space - Los Angeles Market Summary

The Los Angeles office market has been defined by stability in recent years. Vacancies stood at roughly 10% at the end of 19Q1, and have remained within 50 basis points of that figure since 2015. Absorption is healthy, buoyed by major tech company leases and the expansion of co-working providers. Annual rent growth continues a steady, years-long decline however, with annual gains less than half of the cyclical highs posted in 2015. After significantly outperforming the national office market for the majority of the cycle, L.A. rent growth is now in line with average national gains.

New construction proceeded at a measured pace earlier in the recovery, but the peak of this cycle's development wave has arrived. More than 2 million SF of new office product delivered last year, much of it speculative, and more than 6 million SF of additional development is now underway. Vacancies may rise slightly in the near term as a result of these supply pressures, but Los Angeles' massive, diverse economy is capable of generating sufficient demand to keep pace with development.

Office properties traded at around $360/SF on average in 2018, a figure that has trended downward somewhat since peaking near $400/SF in 2016. After more than $10 billion in office sales were recorded in Los Angeles County in both 2016 and 2017, overall volume was down noticeably last year. Roughly $7 billion in trades took place in 2018, well below recent record-setting totals. Roughly $2 billion in trades took place in 19Q1, and the sale of high profile assets in Santa Monica and Downtown LA pushed average pricing higher.

Los Angeles - Office Space Market Overview

The office vacancy rate remains stable despite the accelerating pace of construction, holding slightly below LA's historical average. Net absorption picked up over the second half of 2018 after a sluggish start to the year, helping to mitigate supply pressures. Given the relatively heavy supply pipeline in coming years, which includes an increasing amount of speculative development, the market will need to maintain the absorption momentum of the past few years.

West LA has been the star of the show this cycle, with the region's tech and entertainment office hubs absorbing disproportionate gains.  One of the major drivers of office demand this cycle has been a push by tech titans like Facebook, Google, Amazon, Apple, AT&T/HBO, and Netflix to develop original content and programming for distribution on their networks. These giants of the US economy are expanding their footprints in LA as they seek to harness the expertise of the metro's entertainment industry. Demand growth has spilled over from the core submarkets of Santa Monica, Beverly Hills, and Hollywood, and into burgeoning "Silicon Beach" areas like Marina Del Rey/Venice and Culver City. Amazon Entertainment, Apple, and HBO have all inked deals for more than 200,000 SF in Culver City in recent months, Netflix has gobbled up more than 1 million SF of office and studio space in Hollywood in recent years, and Google announced a lease for more more than 550,000 SF at the soon-to-be-converted Westside Pavilion Shopping Center shortly after taking occupancy of more than 300,000 SF at the converted Spruce Goose Hangar in Playa Vista. 

Downtown LA is also benefiting from this momentum, especially in the Arts District, with a wealth of old warehouse product is ripe for creative office conversion. Indeed, Warner Music's 257,000 SF lease of the retrofitted former Ford Factory in the Arts District was one of the largest of this cycle. Streaming music company Spotify,online coupon provider Honey, and social media content creator TubeScience followed suit in recent quarters with 100,000+ SF Arts District leases of their own. The office market is hot even in traditionally industrial/R&D centered communities in the South Bay. Submarkets like El Segundo and LAX posted some of LA's strongest rent growth in recent quarters.

LA's main office demand driver is the media & entertainment industry. Employment in these fields is typically more volatile than in traditional office-using industries, as jobs are often tied to specific projects and work is not guaranteed once that project wraps up. This dynamic drives a persistent need flexible, collaborative space, and co-working companies are expanding rapidly in Los Angeles to meet that need. WeWork alone has leased more than 1 million SF of office space in LA since the start of 2015, and competitors like Industrious, Regus/Spaces, Convene and others have also been busy. In some cases, these companies are entering into agreements to provide property management services and/or co-tenant amenities as well, providing an appealing value-proposition for office owners.

Plenty of high-quality space still sits on the sidelines. Vacancies in the 4&5 Star inventory slice remain elevated, and an uptick in speculative development in coming quarters will put further upward pressure on the top of the market. The entertainment and tech tenants that are helping drive the office recovery typically favor unconventional creative office space over more traditional assets like office towers. Vacant tower space is plentiful in submarkets like Greater Downtown and the Miracle Mile. This overhang of space may weigh on growth in the near term in some employment hubs.

Los Angeles - Office Space for Rent Trends

Rent growth continues a years-long slowing trend since reaching cyclical highs around 8% in 2015. Given the large amount of new product currently under development, supply pressures could continue to weigh on rent growth in the coming years. Trendy Westside submarkets captured the lion's share of growth earlier this cycle, and in places like Beverly Hills, Marina Del Rey/Venice, and Santa Monica, rents exceed their 2010 nadir by more than 30%.

That dynamic has shifted as the cycle matured though.  There is evidence that Westside submarkets may be approaching an affordability plateau, as rent gains have declined significantly in LA's premiere office nodes where average rents are north of $50/SF. South Bay submarkets on the southern periphery of Silicon Beach appear to be the main beneficiaries. These areas offer proximity to the tech workers concentrated in and around Silicon Beach, with rents that are on average $15-20/SF cheaper. The South Bay is not the automotive research & development hub it once was before Toyota and other manufacturers departed for more business-friendly climates. However, there is still a dense concentration of skilled, well-educated residents living in the area and its abundance of aging industrial product is ripe for creative office conversion. Rents in submarkets like El Segundo and the 190th Street Corridor, where Toyota used to be located, are growing faster than anywhere else in LA.

Los Angeles - Office Space Market Trends

Ground-up speculative development is increasing, while conversions remain a major source of new office supply. In particular, Downtown, West LA, and Hollywood are hotbeds of conversions this cycle. Downtown, Waterbridge Capital is transforming the Broadway Trade Center into almost 600,000 SF of office space, perhaps hoping to mirror the success of Shorenstein Properties Ford Factory project. After acquiring the former Model T assembly plant for $37 million in 2014, Shorenstein invested roughly $50 million to convert the asset to creative office use while preserving its historic exterior. The investment was rewarded in 2016 when Warner Music Group inked a deal to relocate it's headquarters from Burbank to the Ford Factory, and again in early 2019 when Shorenstein sold the asset to the parent company of Warner Music for $195 million.

In West LA and the South Bay, office conversions continue to gain momentum, highlighted by Google's lease and conversion of the airplane hangar where Howard Hughes built the Spruce Goose, and their recent commitment to lease close to 600,000 SF of creative office space following the conversion of the Westside Pavilion Shopping Center. In Hollywood, Hudson Pacific Properties is finding great success converting aging recording studio lots to modern creative office/production facilities, having inked Netflix to deals totaling more than 1 million SF of office and studio space in the past few years. Hackman Capital Partners is pursuing a similar strategy. After purchasing the historic Culver Studios, Hackman announced plans to more than double the existing office and production square footage at the property and inked Amazon to deals totaling more than 550,000 SF. Hackman acquired CBS's Television City studio lot near the end of 2018, and will likely embark on a similar redevelopment plan.

Tenants and developers continue to show a preference for creative office assets. Creative office is a nebulous term, but it generally involves open layouts, high ceilings, unconventional amenities, and a work environment that cannot be easily duplicated in existing high-rise and mid-rise buildings. Tenants throughout the metro are demonstrating an increasing affinity for creative product at the expense of the metro's more traditional stock. That helps explain the contradictory nature of office construction in submarkets with high vacancies, like Downtown and Culver City. The new office product being developed in these areas differs significantly from the aging buildings that represent the bulk of inventory and should help draw the kind of tenants that have typically favored LA's premier Westside locales.

Office Space - Los Angeles Market Investment Trends

Roughly $2 billion in office trades were recorded over the first quarter of 2019. The sale of several high-profile assets, including the office portion of CBS's Television City and the previously mentioned Ford Factory in Downtown LA, pushed average pricing significantly higher. After new LA sales volume records were established in 2016 and 2017, with more than $10 billion in office trades in each year, the pace of trading subsided noticeably last year. Slightly more than $7 billion in office trades were recorded in 2018, with average cap rates holding near 5.5%, as they have for several years.

Tech and media remain the true core buys in LA. The tech- and media-friendly segments of West LA are commanding previously unheard-of prices. Santa Monica, Beverly Hills, Marina del Rey, Century City, and even Downtown all have recorded sales exceeding $1,000/SF this cycle. Areas and assets that attract these types of industries continue to dominate investment throughout the metro. CBS's Television City, the Lantana Media Center in Santa Monica, and the Ford Factory in Downtown LA all cater to media and entertainment tenants and were among the most notable sales in 19Q1. Last year's largest trade was the July acquisition of the Santa Monica Business Park for $627.5 million by a joint venture between Boston Properties and the Canadian Pension Plan Investment Board. The campus is one of the premier office locations in trendy Santa Monica and is home to tenants including streaming service Pandora Media, video game maker Activision Blizzard and Snap, Inc., the parent company of messaging app Snapchat.

If you're looking to move into the Greater Los Angeles Metropolitan Area or into LA itself, just contact us. We're experts in making the leasing process easier and finding the perfect space for your operations and your budget. We'll be glad to work with you to make your move free of hassles and unnecessary expense.

Useful Statistics for businesses looking for office space in Los Angeles
  Los Angeles CA State
2020 Estimated Population 3,973,278 39,346,023
Median Age 35.9 36.7
Occupied 518,346 7,241,318
Owned 1,563,303 21,626,369
Rented 2,279,561 16,470,954
Average Household Size 2.77 2.94
Rental Vacancies 38,729 227,993
Homeowner Vacancies 5,180 77,702
Median Home Value $670,700 $538,500
Median Monthly Rental Cost $1,523 $1,586
Median Household Income $30,225 $33,719
Individuals below poverty level 311,272 2,551,875
Educational Attainment: High school graduate 520,611 5,431,385
Educational Attainment: Some College 658,963 7,690,347
Educational Attainment: Bachelor degree or higher 644,695 5,764,827
Commute 1,499,214 14,963,132
Commute by car, truck or other vehicle - Drive Alone 1,324,757 13,146,038
Commute by car, truck or other vehicle - Carpool 174,457 1,817,094
Use Public Transportation 161,161 843,498
Work from Home 179,497 1,529,697
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