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How Much Does Large Office Space Cost to Lease in Los Angeles?

March 30, 2021 | by Viveka Krishnaswamy
Reviewed by real estate expert Michael Colacino

Are you looking for a large office space to lease in Los Angeles? If so, you probably feel overwhelmed by the hundreds of options available across different locations, sizes, and price ranges. Los Angeles is home to more than 240 million square feet of office space, or the equivalent of about 87 Empire State Buildings, so it may feel challenging to narrow down your choices and find the right space for your needs.

One of the most crucial elements to consider when searching for a rental of any size is the office space cost. How much can your company afford to pay each month, and what kinds of sacrifices are you willing to make to stick to your budget?

A wide range of factors can influence the leasing price of LA commercial real estate. Read ahead to learn more about how much leasing a large office in Los Angeles can cost your company and what goes into determining office rental costs.

Types of Large Office Space for Rent in Los Angeles

The Los Angeles real estate market divides offices into three different building classes: Class A, B, and C. Typically, the higher the class, the more popular (and expensive) the property will be. However, other factors also play into what classification an office space can fall under.

Class A

Class A offices are generally the most desirable, high-quality, modern office properties in Los Angeles. These office spaces are in premium locations, such as the center of Hollywood or West L.A., and they include superior amenities like attractive common areas, modern lobbies, and parking garages.

Because Class A offices are the most coveted options in Los Angeles, they also tend to be the most expensive to rent. However, you’re most likely to find large office spaces tailored to the needs of enterprise-level companies in Class A buildings.

Class B

Class B office spaces fall comfortably in the middle of A and C in terms of quality. These spaces are slightly older than Class A properties and tend to be in the suburbs or on the outskirts of desirable areas than in premium locations. However, Class B offices are reliable, practical workspaces of varying sizes that still bring the Los Angeles charm that many L.A. commercial tenants desire.

Class C

Class C offices are ideal for renters who want functional, affordable, private space with no frills or amenities. These properties are often located on less desirable streets or avenues, feature smaller square footage, and tend to have been built several decades ago. Additionally, any common spaces (such as lobbies and elevators) tend to be on the significantly smaller side.

However, many business owners find that Class C space offers enough to suit their needs, especially if all they require is enough room to fit a few desks and chairs. You can find mid-size Class C space at a reasonable rate, but you won’t get too many bells and whistles.

Common Factors That Affect Rent Prices

Landlords also consider other factors when determining a property’s lease rate. A building’s location, the type of building, the surrounding environment, the length of the lease term, whether other companies share the space, and the space’s square footage all affect how listings will be priced.

Location

The City of Los Angeles is one of the largest cities in the U.S. in terms of land area. Because this city is so widespread, Los Angeles consists of many smaller districts and neighborhoods, some of which feature a higher cost of living than others. Your office space’s location in the greater L.A. area will affect your monthly expenses and how much you can expect to pay in total for your large office space.

Data shows that Downtown Los Angeles, West L.A., and Hollywood contain some of the city’s most expensive offices. Areas like Tri-Cities and South Bay fall into a more moderate cost range, and San Gabriel Valley and L.A. North tend to be the most affordable regions of the city.

Type of Office Space for Lease

When you picture office space, you may think of a multi-floor office building containing dozens of private offices. However, Los Angeles office space has strayed away from this traditional image, and today, you can find a variety of alternative office solutions, such as outdoor office space, shared space, sublease office space, and more.

As you search for the perfect office space for your company, you may find that a workspace in a converted space or non-traditional office setting suits your needs and budget even better than a designated office space built for that purpose alone.

Length of Lease

Until recently, landlords generally required tenants to sign a three- to ten-year leasing contract at the beginning of their rental term. However, the COVID-19 pandemic led many businesses to terminate their leases early, leading landlords to develop more flexible rental terms on office spaces.

While a long-term leasing contract may be more affordable in the long run, short-term and flexible leases may be more suitable if you are unsure how long your business will stay in one place.

Office Sharing and Coworking

Office sharing and coworking are emerging trends in the Los Angeles region that can bring down your rental costs. While we typically think of coworking and office sharing in terms of smaller office needs, you can actually find spaces across many sizes and even find sizeable private space within shared or coworking offices.

Coworking is an arrangement many business owners make to share office space with employees from other companies. In this arrangement, employees can work independently on different projects while sharing equipment, receptionists, and utilities in the same office space.

Similarly, office sharing allows business owners to rent a portion of their office space to other companies. Websites like PivotDesk enable companies to advertise their available office space with month-to-month rental terms.

If you are looking for a large Los Angeles office space for rent, you may want to consider one of these office-sharing strategies instead of agreeing to lengthy rental terms.

Amenities

Space for lease that includes coveted amenities for you and your employees tends to be pricier than space with only essential utilities. However, you may find that included bonus features—such as free Wi-Fi, accessible parking, and local dining options—are worth the added cost.

Commercial Real Estate Price Per Square Foot

Many landlords and building owners determine rental prices by multiplying their spaces’ square footage by an established square-foot rate for their area of the city.

The average rental cost for office space in Los Angeles is $3.50 per square foot per month. However, the prices you will see during your search will probably range from $2 to $6 per square foot, depending on the above factors.

If you’re looking for a large office space for rent, Los Angeles has plenty. We can help you find the one that suits your business needs. Contact us today to learn more about the current listings available for lease throughout the city.

Tagged: Around LA

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