In a significant move within the Los Angeles office market, the Los Angeles Olympics 2028 Committee has leased 160,000 square feet at 1150 S. Olive Street in Downtown LA, according to a recent market analysis by Savills. The relocation from 10900 Wilshire Boulevard reflects a broader trend of heightened leasing activity in Q4 2024, as the market recorded its highest quarterly volume since 2020. According to Savills’ recent report, over 3.8 million square feet of office space was leased during the quarter, contributing to an annual total of 13.7 million square feet—a 29 percent year-over-year increase from 2023.
The property is owned by LBA Realty, which has had the building in its portfolio since 2012.
The relocation of the Olympics committee underscores the importance of Downtown LA as a strategic hub for non-profit and public-sector organizations. This high-profile move was part of several key transactions in Q4 2024, which included notable deals in Century City, El Segundo, and Burbank. Despite such gains, the market’s total leasing activity still trails 23.6 percent below pre-pandemic levels in 2019, highlighting a partial recovery.
The overall asking rate for office space in Los Angeles rose to $3.95 per square foot per month, with Class A properties commanding $4.17 per square foot. While Downtown LA benefits from increased demand, it continues to face challenges related to high availability rates, which stood at 28.2 percent by year-end—a slight improvement from earlier in the year.
Analysts project a gradual decline in office availability rates, though vacancy levels are expected to remain high as companies optimize their footprints. The tech and entertainment sectors, once key drivers of Los Angeles’ office market, have yet to regain their momentum, further impacting recovery. However, sectors such as financial services, law, and government continue to drive demand in submarkets like Downtown LA and Century City.
As the market enters 2025, opportunities may arise for private investors and owner-users to acquire distressed properties, especially as elevated interest rates pressure institutional owners. While headwinds persist, the increased leasing activity seen in 2024 offers a glimmer of hope for a sustained recovery in the years ahead.
