- Los Angeles County tenants signed about 4M SF of office leases in Q3 2026, the most since 2019, up 15% year over year, per Savills, with renewals driving much of it.
- Availability fell to 26.5%, down 110 basis points from Q2, and sublease space dropped to 6.3M SF from 8.7M SF a year earlier, the eighth straight quarterly decline.
- Century City and Beverly Hills are the priciest submarkets at $7.61 and $6.71 per SF per month, and Savills expects owners of top buildings to keep leverage as top-tier space grows scarcer.
Los Angeles County office leasing reached its best showing since 2019 in the third quarter, according to Savills data reported by Commercial Observer, a sign the market is stabilizing slowly.
Tenants signed about 4M SF from July through September, up 15% versus a year earlier and 0.7% over Q2. Renewals drove much of the total, making up six of the ten largest deals.
Get Smarter about what matters in CRE
Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes
The Quarter’s Biggest Deals
Raytheon’s 144,709 SF renewal in El Segundo was the largest transaction. PwC followed with a 138,000 SF move to Century City, and Pepperdine University renewed 117,495 SF near Marina del Rey and Playa Vista.
Advertising agency Innocean USA also relocated, taking 101,000 SF in El Segundo.
Availability and Sublease Space Shrink
Overall availability dropped to 26.5%, which is 110 basis points lower than Q2 and 170 basis points below a year ago.
Sublease space fell to 6.3M SF from 8.7M SF a year earlier, the eighth consecutive quarter of shrinking sublease supply.
An Uneven Recovery
Century City, Beverly Hills and El Segundo improved the most, but several areas still run above 30% availability. Miracle Mile is highest at 39.2%, followed by Burbank at 37.1% and Culver City at 37%.
Rents Flat, Premium Space Pricey
Average asking rents edged down 0.2% from Q2 and rose 0.6% over the year, with Class A rents up 0.8% annually. Century City and Beverly Hills remain the costliest submarkets, at $7.61 and $6.71 per SF per month.
Why It Matters
Leasing is improving, but the data show a market where much of the volume is tenants staying put and strength is concentrated in a few submarkets. Savills expects owners of premier buildings to hold the upper hand as top-tier space grows scarcer, with concessions staying near record levels.
Investors are taking notice, as CRE Daily reported when Los Angeles CRE draws investors as office prices reset.
What’s Next
Watch whether availability keeps falling toward the high-20s and whether weaker submarkets such as Miracle Mile and Burbank start to improve.
