L.A. Office Leasing Hits Highest Level Since 2019
Why this matters
Office continues to trade in two distinct markets: trophy assets in walkable submarkets that are leasing at or near record rents, and commodity Class B and C buildings where the basis is still resetting. Underwriting on the latter has moved toward replacement-cost-minus, with credit underwriting now leaning on tenant covenant and remaining lease term rather than mark-to-market expectations. Los Angeles is working asset-by-asset through an extended office reset. Hospitality on the West Side and selective industrial in the South Bay are where capital is currently moving; downtown Class B remains in price discovery. For LP-positioned capital, the read-through is that the bifurcation is now a structural feature of the sector, not a cycle to wait out.
Editorial analysis · Real Estate Trail Editorial
On the RET wire
- The seventh Los Angeles story tracked on the wire in October 2026. All Los Angeles coverage →
- Disclosed office deal value tracked in October 2026: $2.2B across 5 reported transactions. All Office coverage →
Computed from Real Estate Trail’s own tracked coverage
Los Angeles County office leasing climbed to its highest level since 2019 during the third quarter in another sign that the market is slowly stabilizing. Tenants signed about 4 million square feet of office leases in…
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