Market Report: Los Angeles

DOWNTOWN LOS ANGELES

Arts District, Chinatown, Civic Center, Fashion District, Financial District, Little Tokyo, Historic Downtown LA, South Park, and more.

Rent Rate (sf/mo)

Leasing Activity SF

Vacant Available SF

SOURCE: CoStar 

  • Q2 - 2023
  • Q2 - 2024
  • Q2 - 2025

Leasing Market Overview

MEASURING Q2 2025

Downtown Los Angeles is feeling the pressure, with retail availability rising sharply, up over 200 basis points since early last year, now sitting at 10.9% in Q3. Store closures and bankruptcies have hit hard, pushing almost 400,000 SF of new space onto the market in just the past year, and net absorption sits deep in the red at -280,000 SF.

While single-tenant retail vacancies have improved slightly since mid-2024, they’re still above the norms seen from 2015 to 2019. Multi-tenant properties are struggling more, with availability above 10%, the highest in over a decade, after notable closures like Macy’s at The Bloc and Vans on Broadway.

Despite challenges, Downtown LA’s central location remains attractive for tenants looking for access to employers, courts, and transit. The 2023 completion of the Regional Connector has further strengthened Downtown’s role as the heart of LA’s public transportation network. But concerns over homelessness, crime, and a slow office-worker return continue to weigh on demand.

Rents have dipped 1% over the last year, matching the broader LA trend. Over five years, rents are up 8.1%, just trailing the citywide 9%. Historically, Downtown has averaged 1.5% annual rent growth, a pace not expected to return until at least 2027.

Downtown LA has added more retail space than most LA submarkets in the last decade, with about 150,000 SF of net new supply, but with no new construction underway, oversupply isn’t a concern in the near future.

SNAPSHOT OF LEASES SIGNED

No. Signed Date Start Date Address SF Leased Rent/SF/Mo Months on Market Leasing Rep Company
1 Jun-25 Jul-25 210 E Olympic Blvd 1,628 $1.72 5 Mos Aflalo Equites, LLC.
2 Jun-25 Jun-25 808 Wall St 2,450 $2.86 1 Mo realestatela.com
3 Jun-25 Jul-25 501 S Los Angeles St 3,250 $1.75 2 Mos realestatela.com
4 May-25 Jun-25 210 E Olympic Blvd 572 $2.10 5 Mos Aflalo Equites, LLC.
5 May-25 Jun-25 951-953 N Vignes St 630 $3.00 1 Mo Stanley Estates Limited, LLC
6 May-25 Jun-25 1018-1020 S Los Angeles St 1,000 $1.99 3 Mos realestatela.com
7 May-25 Jun-25 951 Crocker St 1,920 $1.50 3 Mos realestatela.com
8 Apr-25 May-25 1458 S San Pedro St 1,006 $2.09 2 Mos Berkshire Hathaway California Properties, Berkshire Hathaway H.S.C.P.
9 Apr-25 May-25 200 S San Pedro St 4,894 $4.00 69 Mos CBRE
10 Apr-25 May-25 214-266 E 9th St 1,750 $2.17 12 Mos Beyond Space

SOURCE: CoStar 

Successful Client

We recently sat down with Paul, founder of The Collar Club, to hear the powerful story behind his brand and its mission-driven growth. With the help of illi’s Rachel Adams, Paul expanded his concept by leasing a new location for Collar & Comb at 8490 Santa Monica Blvd, West Hollywood, CA 90069.

What began as a deeply personal journey with his service dog Cavalino has evolved into a full suite of luxury pet service brands, including Collar & Comb, Collar & Foam, Collar & Home, Collar & Click, Collar & Chauffeur, and more.

Watch the full story and meet the man behind California’s top-rated pet grooming brand.

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