How much does office space cost in Los Angeles?

Finding the right office in Los Angeles is about more than just location. With one of the most diverse commercial real estate markets in the US, LA offers options that range from affordable shared workspaces to luxury office space in Los Angeles that rivals New York and San Francisco in both price and prestige. Understanding how costs vary across districts and building classes can help businesses make smarter leasing decisions. Whether you’re a startup looking for a creative hub or an enterprise seeking a corporate address, knowing what drives rent in Los Angeles will help you plan your budget effectively.

Average Office Space Costs in Los Angeles

Office space prices in LA depend heavily on the area, building quality, and amenities.
As of early 2025, the average annual asking rent for commercial offices in Los Angeles is around $48–$50 per square foot. However, this varies widely:

• Class A offices: Premium buildings with high-end amenities typically cost $55–$80 per sq. ft.
• Class B offices: Mid-tier spaces with standard finishes typically average $40–$45 per square foot.
• Class C offices: Older or less central properties fall around $30–$35 per sq. ft.

Districts like Century City and Beverly Hills feature luxury office space in Los Angeles that can cost over $80 per square foot, while Downtown LA and Burbank offer more cost-effective leases.

Key Factors That Influence Rent

To better understand price differences, it is helpful to examine the factors that shape leasing costs across Los Angeles.

1. Location and Accessibility

Areas with proximity to transit hubs, entertainment districts, or business centers often command higher rents. West LA and Santa Monica are prime examples.

2. Building Class and Amenities

A high-rise with rooftop lounges, concierge services, and advanced energy systems will cost significantly more than a basic mid-tier office.

3. Lease Type and Duration

Full-service leases (covering utilities and maintenance) are more expensive than net leases. Long-term contracts often come with better negotiation opportunities.

4. Market Trends and Vacancy Rates

Vacancy levels in Los Angeles hover around 24 to 25 per cent, leading to competitive pricing in some submarkets. Tenants can often negotiate perks like free parking or rent-free months.

Estimating Your Office Budget

Before signing a lease, calculate your total occupancy costs, not just the base rent.
Here’s what to include:

• Base rent (price per sq. ft. × total area)
• Operating expenses such as maintenance, property taxes, and insurance
• Utilities and parking costs
• Furnishing and moving expenses

For instance, a 5,000 sq. ft. office in a Class A building at $60 per sq. ft. would cost about $300,000 annually, excluding operational add-ons.

Is Luxury Office Space Worth It?

Premium offices bring more than aesthetics. They help attract talent, enhance brand image, and provide access to professional networks. Many tech, law, and entertainment firms invest in luxury office space in Los Angeles for this reason. Yet, businesses must balance prestige with practical value. Subleasing or hybrid work arrangements can reduce costs without compromising quality.

Conclusion

Los Angeles offers a diverse range of workspaces, from affordable coworking setups to ultra-modern towers overlooking the skyline. Prices fluctuate based on neighborhood, building class, and amenities, but opportunities exist for every budget. For companies seeking to build credibility and convenience, luxury office space in Los Angeles can be a strong investment. Still, understanding your operational needs and negotiating smartly will ensure you get value for every square foot. In a market this dynamic, clarity and planning are key to finding the right fit.