Office market braces for more property distress in 2023 as underlying fundamentals remain soft

In Q1 2023, the Los Angeles office market continued to see a lower level of leasing activity with 2.9 million square feet (msf) leased. This was flat from last quarter, as well as down 19% from 3.6 msf reported a year ago. This was also below the 5-year quarterly leasing average of 3.3 msf. With continued economic uncertainty spilling over from late-2022, expect leasing activity to remain low in 2023 as most discretionary lease deals are now on the sidelines.

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