The numbers are in, and Los Angeles' office leasing activity was grim in 2020. According to a new market report from Savills, office leasing totaled only 10 million square feet last year, the lowest in 20 years.

Office leasing transactions were down 44% compared to 2019, when office leasing totaled 18 million square feet in the market. Clearly, the pandemic was the root cause of this fracture in the office, due largely to business closures and work-from-home policies. These policies have at best delayed real estate activity and at worst has catalyzed a fundamental change in office usage.

In 2020, the low leasing activity drove the vacancy rate up to 22.5%, a 10-year high. At the close of 2019, the vacancy rate in Los Angeles was 18.1%. In addition to the meager leasing activity, the increased supply of sublease space also contributed to a higher availability rate. The sublease supply increased 76% to 8 million square feet in Los Angeles.