Leasing activity remains below 5-year quarterly average as discretionary deals are on the sidelines

In Q3 2023, the Los Angeles office market reported leasing activity of just under 3.0 million square feet (msf). This was up 23% from 2.4 msf reported last quarter but still down from 3.1 msf reported in Q3 2022. Despite larger relocations and expansions from Clearlake Capital, Penske Media, and ByteDance all on the Westside, office leasing activity remains largely non-discretionary as most occupiers have put growth on hold in the second half of 2023. In addition. the Hollywood labor strikes have negatively affected leasing activity in the entertainment/ media sector this year. As a result, expect overall leasing activity to most likely remain lower than the 5-year quarterly average of 3.2 msf through year-end.

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