Los Angeles Office Market Sees Traditional Firms Claim the Spotlight

Over the past year, Los Angeles’ office leasing landscape has witnessed a notable shift: technology and entertainment tenants are yielding ground to more conventional occupiers—namely law firms, accounting practices, and financial institutions.

According to Avison Young’s mid‑year review—which surveyed over 250 CRE professionals—most new office absorption in L.A. is now being driven by what the firm labels “traditional” users such as legal and financial services companies.

John Eichler, a principal with Avison Young, emphasized that although downtown L.A. continues to face challenges, law and finance tenants are generating stable, net‑positive absorption. He noted that "if you’re an office owner in L.A., you’re probably better off owning in an area... with a significant presence of traditional firms," rather than banking on tech and entertainment tenants.

Professional services—encompassing law, accounting, and consulting—are also sticking with their office footprints amid return-to-office mandates and finalized hybrid strategies. Harry Klaff, Avison Young’s U.S. president, reported that roughly 96% of the surveyed professionals foresee steady or growing market activity as the year continues.

Still, vacancy remains a major concern: the region’s overall office vacancy hovered at 24.2% in Q1 2025, per CBRE.Despite those figures, Los Angeles retains its crown as the nation’s top coworking hub. In Q1, the area boasted 304 coworking venues—up from 292 the prior quarter—spanning more than 6.8 million sq ft. Coworking providers like Serendipity Labs are taking advantage, recently anchoring a location within a WeWork space in Costa Mesa and eyeing further Orange County expansion.

Sources:

Chidakwa, B. (2025, June 27). Los Angeles office market sees rise in traditional firms. The Real Deal. https://therealdeal.com/la/2025/06/27/los-angeles-office-market-sees-rise-in-traditional-firms/

Koren, J. (2025, June 26). Law firms, financial services driving LA office leasing: Avison Young. Los Angeles Business Journal. https://www.bizjournals.com/losangeles/news/2025/06/26/office-avison-young-traditional-klaff-eichler.html

Paramount Property Tax Appeal. (2025, April). California office market update: April 2025. https://www.paramountpropertytaxappeal.com/blog/california-office-market-april-2025