Los Angeles Office Vacancy Reaches 23.9% in Q3 2025 — Advisor Jacob Lavian Says the Market Is Entering a “Rare Window of Opportunity” for Tenants and Redevelopers

Los Angeles, CA — November 13, 2025 — Greater Los Angeles’ office vacancy rate climbed to 23.9% in Q3 2025, according to the latest market report from Cushman & Wakefield. With nearly a quarter of all office space sitting empty, commercial real estate advisor Jacob Lavian says the current environment is “one of the most significant shifts in the LA office landscape in more than two decades.”

The report highlights structural challenges affecting the sector — from hybrid work adoption to elevated operating costs — but also notes a rising level of tenant leverage and new interest from investors exploring repositioning opportunities, particularly in older, underperforming buildings.

“Vacancy levels this high are not just a statistic — they reshape how deals get done,” said Lavian, a Los Angeles commercial real estate advisor who works across office, retail, industrial, and mixed-use assets. “For tenants, this is the strongest negotiation environment we’ve seen since the post-2008 recovery. For investors and developers, the discount window is opening for value-add, conversion-ready buildings that wouldn’t have been accessible even three years ago.”

Tenant Leverage Rising as Landlords Compete to Fill Space

With availability increasing, many landlords across Los Angeles are offering deeper concessions, including:

• Longer free-rent periods

• Larger tenant improvement packages

• More flexible lease structures

• Aggressive renewal incentives

  
  

“This market will not stay this tenant-friendly forever,” Lavian added. “Companies that want to reduce costs or upgrade their space should be actively evaluating the market right now.”

Redevelopment and Conversions Accelerating

As vacancy rates rise, owners of aging or obsolete office assets are exploring broader repositioning options. The 23.9% vacancy figure mirrors national trends, but Los Angeles’ land constraints and high demand for alternative uses make certain buildings strong candidates for:

• Office-to-residential conversions

• Mixed-use redevelopment

• Creative-industry or media-production facilities

• Community-oriented redevelopment projects

  
  

Lavian, who has represented buyers and sellers in a wide range of commercial transactions across Los Angeles, says many groups are re-entering the market strategically.

“We’re seeing investors with long-term horizons quietly approach assets that were never available before,” he said. “Smart buyers are using this moment to evaluate buildings that could support repositioning or redevelopment in submarkets that were previously too competitive.”

Industrial and Retail Tell a Different Story

While the office sector struggles, industrial vacancy in Greater Los Angeles remains relatively stable at 4.8%, and retail sits around 6.0%, according to Q3 2025 reports from Cushman & Wakefield and Matthews Real Estate Investment Services. This divergence underscores a “two-speed” commercial market — weakness in office, resilience in logistics and neighborhood retail.