Real Estate for a changing world

Contact us
  • Choose your subject...
  • Human resources
  • Research
  • Media inquiries
  • Investors relation
  • Occupier solutions
  • Other

This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.

5 + 1 =

 

*Mandatory information

 

Market Research - Los Angeles
USA

United States: Los Angeles office market - H2 2021

Office investment rose in 2021, driven by investor interest in studio and production space, with many larger deals lingering on the horizon.

Recovery on the horizon 

The post-Covid reality is starting to set in as the economy continues to rebound. Jobs have bounced back but office demand still lags. The notable exception is for technology and entertainment companies which continue to take newly constructed office buildings and production space.  
Traditional office users are adopting a hybrid work arrangement with their employees, leading executives to further assess and execute their long term space needs. 
Many landlords remain reluctant to devalue their buildings by lowering asking rents but continue to offer free-rent and parking concessions to keep existing tenants.

 

Downward Pressure Remains on Market-Wide Asking Rents

Available sublease space continues to decrease as space becomes leased, is pulled off the market or rolls over to direct vacant space. Landlords continue to aggressively offer concessions in older buildings in less desirable areas while newly constructed office space in West Los Angeles continues to pull tenants from neighboring markets. 
Asking rents are not declining uniformly however as the market is bifurcating between newer creative space desired by entertainment and technology tenants and more traditional office space. More landlords are looking to convert low-rise buildings to life science or alternative uses.

 

The Coiled Spring Of Studio Space Demand Intensifies


Office investment rose in 2021, driven by investor interest in studio and production space, with many larger deals lingering on the horizon. Hackman Capital remains the most active and has announced plans to purchase CBS Studio Center for $1.8 billion, making it one of the largest transactions ever for Los Angeles County.
Office investors are moving outside of their comfort zone, with Brookfield purchasing the Dreamworks Campus in Glendale for $326 million. 
The global entertainment market has contributed to a 1.2 million SF pipeline of new studio space development and occupancy of existing spaces has stayed above 95%.

 

AAG - Los Angeles office market H2 2021
PDF - 497Ko