Los Angeles office market ends 2022 with an overall slowdown in leasing activity

At year-end 2022, the Los Angeles office market experienced a slowdown in leasing activity to just 2.9 million square feet (msf) reported in the fourth quarter. This was down 8% from 3.1 msf reported in the previous quarter, as well as down 19% from 3.6 msf reported a year ago. Full year 2022 total leasing activity of 12.3 msf was up from 11.9 msf reported in 2021 but still down 32% from 18.0 msf reported in 2019 before the COVID-19 pandemic. With continued uncertainty about a slowdown in the overall economy, a pullback in hiring in the technology sector, and hybrid workplace policies which are now here to stay, expect office space demand to remain lower going into 2023 despite a labor market that is still tight.

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