Leasing activity slows at mid-year 2023 as occupiers delay real estate decisions amidst uncertainty

In Q2 2023, the Los Angeles office market again reported lower leasing activity with 2.4 million square feet (msf) while average rental rates have remained stubbornly high despite eroded office valuations. Leasing activity was down 15% from 2.9 msf reported last quarter, as well as down 12% from 2.8 ms reported in Q2 2022. This was also below the 5-year quarterly leasing average of 3.2 msf. With most discretionary leasing now on the sidelines, expect leasing activity to remain lower amidst continued economic uncertainty in the short-term.

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