Los Angeles Office Market Report - Q1 2026

Kidder Mathews' 1Q 2026 Los Angeles office market report documents a market facing persistent headwinds, with direct vacancy holding steady at 15.9%, total availability at 19.7%, and average direct asking rents at $3.53 per square foot on a full-service basis. Leasing activity remained relatively flat at 3.4 million square feet with negative net absorption of 143,000 square feet, reflecting continued tenant hesitancy around return-to-office mandates and a structural shift toward remote and hybrid work arrangements, though healthcare occupiers and new media companies showed increased demand amid elevated landlord concessions in higher-vacancy submarkets.