L.A. Office Leasing
Commercial Observer
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Office leasing activity in the nation’s second-largest market dropped dramatically again in 2023, according to the latest figures. Needless to say (perhaps), it was also down sharply from a pre-pandemic 2019. On a more positive note (perhaps), law firms appear to be powering office leasing in major hubs such as New York, Miami, Washington and San Francisco.
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— Tom Acitelli, Deputy Editor
L.A. Office Leasing Down Sharply in 2023: Savills
It’s been a dark winter already for office brokers and investors in Greater Los Angeles. The region reported less than 2.2 million square feet of leasing in the fourth quarter, down 28 percent from the 3 million square feet signed in the third quarter and 26 percent from the same period last year, according to a Savills report released Tuesday. Leasing activity for the year hit about 10.5 million square feet, which is down 15 percent from 2022 and down 42 percent from the 18 million square feet recorded in 2019 before the pandemic.
The Office Market's Brightest Spot Going Into 2024: Law Firms
One industry in particular is standing athwart history and doubling down on the importance of physical office space: law firms. U.S. law firms leased some 12 million square feet of office space through the first three quarters of 2023, said David Smith, head of Americas insights for brokerage Cushman & Wakefield. Fourth quarter numbers were still being finalized by press time, but, should 2023’s pace endure, it would exceed the 14.8 million square feet the legal industry leased in 2022 — and would set a new annual record. The trendlines certainly lean in favor of a record.
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