LA West Q1 2021 Office Market Trends
More office buildings on the Westside were in the red in Q1 2021. Available office space ballooned to the highest level on record, up 64% from Q1 2020 to 23.1 million square feet.
Weak demand for office space continued to hurt leasing volume in Q1 2021, down 39% from Q1 2020.
Tenants turned in the keys. Landlords had 58% more available direct space on the market than last year, totaling more than 18.5 million square feet as of Q1 2021.
More tenants are looking to unload square footage they no longer need than are looking to add space. Available sublease space shot up 100% from last year to more than 4.8 million square feet.
Landlords remained unmoved, pushing the average asking rent up 3.7% from last year to $5.07/SF FSG, per month, on a direct basis.
Expiration dates on sublease space flooding the market began to move sublease asking rent, down one cent from Q4 2020. However, the average asking rent for sublease listed two cents higher than last year at $4.15/SF FSG.