he experiential hospitality firm’s new location comes as Downtown Los Angeles grapples with one of the highest availability rates among LA submarkets.
On Location LA, LLC has signed a new 108,272-square-foot lease at 445 S Figueroa Street in Downtown Los Angeles, a major commitment to the submarket that ranks among the largest new-location transactions recorded in the first quarter of 2026, according to Savills’ Q1 2026 Los Angeles Office Market in Minutes report.
The 40-story property, formerly known as Union Bank Plaza, was built in 1967 and renovated in 2021. The building holds approximately 675,000 square feet of office space. The Southwest Carpenters Pension Trust acquired the property in 2024 for $80 million. On Location is an experiential hospitality company that partners with major event organizations, and its expansion to Downtown Los Angeles is widely understood to be connected to the company’s role as the official hospitality provider for the 2028 Olympic and Paralympic Games in Los Angeles.
The lease represents a meaningful vote of confidence in Downtown Los Angeles, which continues to face some of the steepest availability challenges in the broader market. The Downtown LA submarket registered a 31.8 percent availability rate in the first quarter of 2026, one of the highest among all Los Angeles submarkets, and well above the market-wide average of 27.3 percent, according to the Savills report.
Despite the high availability, average asking rents in Downtown LA stood at $3.76 per square foot per month, below the Los Angeles overall average of $4.06 per square foot. The market-wide average asking rent rose 0.5 percent quarter over quarter and 2.9 percent year over year during the first quarter, marking four consecutive quarters of rent growth, according to Savills.
On Location’s transaction was one of three new-location deals among the ten largest Los Angeles leases of the quarter, signaling incremental tenant demand even amid an environment of elevated supply. Total leasing activity across Los Angeles reached 3.5 million square feet in the first quarter, up 2.7 percent year over year and 8.0 percent above the five-year quarterly average, according to the Savills report.
One of the more encouraging trends in the market has been the continued reduction in sublease availability. Available sublease space across Los Angeles declined to 7.4 million square feet, down from 10.0 million square feet a year ago and 33.0 percent below the 11.0 million square foot peak reached in the third quarter of 2024. The Los Angeles market has now recorded six consecutive quarters of declining sublease supply, according to Savills.
Looking forward, On Location’s presence in Downtown Los Angeles could further benefit from the wave of Olympics-related leasing activity that has begun to materialize. Savills anticipates that average asking rents will continue their upward trajectory as sublease availability declines, while a substantial volume of loan maturities in 2026 and 2027 could drive increased transaction activity as assets transition between owners, according to the report.
