According to a report from Savills, office availability in Los Angeles increased by 26.6% in the first half of this year. This is the highest-ever availability rate recorded in the Greater L.A. area. Availability rate in the sublease market increased by 400,000 sq. ft in the second quarter to reach 10.8 million sq. ft. - Availability rate in the sublease market grew 20% YoY from 9 million sq. ft.
- However, this contributed a mere 5% to L.A.'s overall availability, now at 221 million sq. ft.
- Office leasing activity in the city fell by 15% QoQ and 12% YoY to 2.4 million sq. ft.
- In the report, Savills said it expects the availability to increase in the coming months and predicted an escalation in distress in the later part of this year, extending into the next year.
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