- Tenants signed about 4 million square feet of Los Angeles County office leases in Q3 2026, up 15% year over year, with renewals accounting for six of the 10 largest deals.
- Availability fell to 26.5%, down 110 basis points from Q2 and 170 from a year ago, and sublease space dropped to 6.3 million square feet for an eighth straight quarterly decline.
- Century City, Beverly Hills and El Segundo improved most, while Miracle Mile, Burbank and Culver City still run above 37% availability, so recovery is uneven.
Los Angeles County office leasing climbed to its highest level since 2019 in the third quarter, according to Savills. Tenants signed about 4 million square feet of leases from July through September.
That is up 15% from a year ago and 0.7% from Q2. Renewals drove the activity, accounting for six of the quarter’s 10 largest deals.
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The Quarter’s Biggest Deals
Raytheon signed the largest deal, renewing 144,709 square feet in El Segundo. PwC followed with a 138,000-square-foot relocation to Century City, and Pepperdine University renewed 117,495 square feet near Marina del Rey and Playa Vista.
Ad agency Innocean USA also relocated to 101,000 square feet in El Segundo.
Availability and Sublease Space Shrink
Overall availability fell to 26.5%, down 110 basis points from Q2 and 170 basis points from a year ago. Available sublease space dropped to 6.3 million square feet from 8.7 million a year earlier, the eighth straight quarter of declining sublease supply.
An Uneven Recovery
Century City, Beverly Hills and El Segundo posted the biggest improvements. Several parts of L.A. still carry availability above 30%, led by Miracle Mile at 39.2%, Burbank at 37.1% and Culver City at 37.0%.
Rents Flat, Premium Space Pricey
Average asking rents slipped 0.2% from Q2 but rose 0.6% from a year ago, while Class A rents gained 0.8% annually. Century City and Beverly Hills remain the most expensive submarkets, with asking rents averaging $7.61 and $6.71 per square foot per month.
Why It Matters
The leasing rebound is another sign the market is slowly stabilizing, and shrinking sublease supply removes a source of competition for landlords. Investors have already been returning as office prices reset.
What’s Next
Savills expects landlords in premier submarkets to retain pricing power as trophy space tightens. Concessions are likely to stay near historic highs, so tenants in weaker submarkets should keep negotiating leverage.
