LA office leasing picks up in Q2; still lags pre-pandemic

3M sf of lease deals closed, but nearly a quarter of all office space is available

Los Angeles /
Jul.July 06, 2021 10:31 AM
Boston Properties’ Santa Monica Business Park and the Colorado Center in Santa Monica (LA Realty Partners, Boston Properties)
Boston Properties’ Santa Monica Business Park and the Colorado Center in Santa Monica (LA Realty Partners, Boston Properties)

Office leasing accelerated in Los Angeles in the second quarter, with a number of high-profile deals closing, but activity still lagged amid the pandemic.

The 3.1 million square feet of space leased from April through June was 55 percent more than in the first quarter, according to Commercial Observer, citing Savills data. Still, it was down 21 percent from Q1 2020 and 10 percent below the five-year quarterly average.

Another sour note: Availability reached 24.1 percent in the second quarter, higher than in Q1, according to the report. Sublease space hit an all-time high of 9.2 million square feet, up from 9 million square feet in the first quarter. Subleasing picked up during the pandemic as companies shed space in the work-from-home world or exited offices entirely.

About a million square feet leased in the second quarter was between a handful of leases, including three at Boston Properties-owned complexes.

Both Hulu and Roku leased space at Boston Properties’ Colorado Center in Santa Monica. Hulu signed a seven-year deal for 351,000 square feet, while Roku committed to 72,000 square feet. Snap Inc. added 140,000 square feet to its existing lease at Boston Properties’ Santa Monica Business Park.

Creative Artists Agency renewed its 290,000-square-foot lease at Hines’ 2000 Avenue of the Stars in Century City.

Average monthly asking rents across L.A. County declined quarter-over-quarter to $3.84 per square foot, but were still up from the same time last year by about 5.7 percent. That’s largely because of sublease space hitting the market and deliveries of new Class A space.

[CO] — Dennis Lynch





    Related Articles

    arrow_forward_ios
    Douglas Emmett's Jordan Kaplan with 21600 Oxnard Street (Getty, LoopNet)
    Douglas Emmett claims Center for Autism owes $4.7M
    Douglas Emmett claims Center for Autism owes $4.7M
    DTLA office buildings
    LA office leasing slows with deals “falling out of contract”
    LA office leasing slows with deals “falling out of contract”
    Jeff Bezos and Water Garden at 2450 Colorado Avenue (Getty, Google Maps)
    Amazon signs LA’s largest office lease of year
    Amazon signs LA’s largest office lease of year
    From left: 17877 & 17875 Von Karman Ave in Irvine, PGGM CEO Edwin Velzel and MetLife CEO Michel Khalaf (LoopNet, PGGM, MetLife)
    MetLife, PGGM buy Irvine creative office in biggest OC deal of year
    MetLife, PGGM buy Irvine creative office in biggest OC deal of year
    LaTerra Development's Charles Tourtellotte with 4112 Del Rey Avenue (LinkedIn, Loopnet)
    LaTerra buys Marina del Rey office complex
    LaTerra buys Marina del Rey office complex
    FS Investments' Michael Forman and Tishman Speyer's Rob Speyer with 555 South Aviation Boulevard (Tishman Speyer, LoopNet, iStock)
    Tishman Speyer notches priciest LA office sale of year
    Tishman Speyer notches priciest LA office sale of year
    Hacienda Associates' Ernesto Fonseca with 225 West Broadway (Hacienda Associates, LoopNet)
    Value of Glendale office building dips to $217 psf
    Value of Glendale office building dips to $217 psf
    KBS CEO Marc DeLuca and Union Bank Plaza at 445 S Figueroa Street in Los Angeles (Loopnet, LinkedIn)
    Another deal for KBS’ Union Bank Plaza falls through
    Another deal for KBS’ Union Bank Plaza falls through
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...