SNAPSHOT – Q3 2025

The Los Angeles office market vacancy rate was 23.9% and negative net absorption of 515,035 square feet resulted in a year-to-date decline in occupancy following a positive first half of the year. Market-wide asking rents moved down to $3.58 per square foot per month on a full-service gross basis. Rates are highest in West Los Angeles, where the overall asking rate was $5.13 per square foot per month for Class A space. Tenants sought furnished and move-in-ready space, which led to several large subleases in the South Bay. Deal structures have shifted to accommodate more flexible occupier needs. Deals for three or five years have become more common.

On the industrial side, vacancies have climbed to 4.8%, but availability, which includes space being marketed for lease even if not yet vacated, fell for the first time in nearly four years to 6.5%. This drop may indicate a shift in momentum for the industrial market, which peaked in activity post-COVID.

Data provided by Cushman and Wakefield, a global commercial real estate services firm. The company tracks commercial real estate market activity including supply, demand and pricing trends.