What's a typical lease term in Los Angeles?

7 years for institutional Class A. Shorter terms are achievable on smaller floor plates with stronger covenants.

How is rent quoted in Los Angeles?

In USD/sqft/year. We also publish a USD-normalised view ($65/sqft/yr) for cross-market comparison.

Modified-gross with op-ex escalations.

Typical lease length: 7 years.
Typical rent-free: 14 months.
Vacancy: 22.5%; trend flat.
Modified-gross with op-ex escalations.

Los Angeles office lease norms

Modified-gross with op-ex escalations.

TL;DR

Typical lease length: 7 years.
Typical rent-free: 14 months.
Vacancy: 22.5%; trend flat.
Modified-gross with op-ex escalations.

Structure

Modified-gross with op-ex escalations. Rent-free 12-20 months on a 10-year term is standard. TI of $130-$200/sqft achievable. California Civil Code 1938 disclosure (CASp) is mandatory.

Negotiating levers

Free rent and TI remain the most negotiable line items; landlords prefer concessions to face-rent cuts because they preserve headline rent and implied valuation. Always model effective rent (face minus PV of concessions).

Key facts

city	Los Angeles
country	United States
region	Americas
classARentLocal	65 USD/sqft/yr
classARentUsd	$65/sqft/yr
vacancy	22.5%
typicalLeaseYears	7
typicalRentFreeMonths	14
submarkets	6
primeYieldPct	5.8%

Frequently asked questions

What's a typical lease term in Los Angeles?: 7 years for institutional Class A. Shorter terms are achievable on smaller floor plates with stronger covenants.
How is rent quoted in Los Angeles?: In USD/sqft/year. We also publish a USD-normalised view ($65/sqft/yr) for cross-market comparison.

Editorial provenance

Reviewed by Miriam Hollander — Lead market analyst. Last updated 2026-04-15. See our methodology and editorial standards.

Primary sources for this page

CBRE Marketview reports — CBRE
JLL Office Insight — JLL
Cushman & Wakefield Marketbeat — Cushman & Wakefield
Savills World Research — Savills
Colliers Global Office Outlook — Colliers

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