Published on Wednesday, July 8, 2026
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As the market deals with high vacancy, the pricing favors tenants — with landlords aggressively offering concessions.
West Los Angeles office tenants can upgrade to Class A space at the lowest cost premium in seven years, as landlords aggressively move to attract tenants and fill space.
Going back to 2019, leasing volume reached a cycle high of 6.56 million square feet, coinciding with the narrowest Class A versus Class B rent spread in the past 10 years at just $1.95 per square foot.
Following the pandemic slowdown in 2020, both leasing activity and the Class A rent premium rebounded. By 2024, the rent differential reached a post-pandemic high of $6.17 per square foot while leasing volume climbed to 5.69 million square feet, reflecting growing tenant confidence, return-to-office initiatives and continued demand for best-in-class office environments across West Los Angeles.
But since 2024, the Class A rent premium has declined sharply to $2.88 per square foot, which is the lowest post-pandemic rent spread and the second-lowest level recorded over the past decade.
"West Los Angeles has historically required a meaningful premium to occupy premier Class A buildings," Shane Halpern, market intelligence analyst, Avison Young, told GlobeSt.com.
"Today, with the Class A rent spread near its lowest level in recent years and landlords offering substantial concessions, tenants can access top-tier space at one of the most favorable values since 2019."
Historically, tenant demand has been strongest when the cost of upgrading to higher-quality office space is compressed, allowing occupiers to secure premier buildings for only a modest increase in occupancy costs.
While leasing activity has moderated, landlords remain aggressive with concessions, tenant improvement allowances and rental rate negotiations to address remaining vacancy.
As a result, tenants have a rare opportunity to upgrade into Class A space at a fraction of the premium seen just two years ago, creating one of the strongest tenant-favorable leasing environments since 2019.