LA medical office performance cools slightly in 2025

The Los Angeles medical office sector, typically resilient when challenges affect conventional office properties, ended 2025 with early signs of plateauing market fundamentals. Though vacancy rates showed a slight quarter-over-quarter improvement, declining from 9.0% to 8.9%, on a year-over-year basis vacancy expanded 0.7% from 8.2%. Direct availability also rose slightly year over year from 9.3% to 9.5% but was slightly offset by a decline in sublease availability (0.9% to 0.5%). This left total availability unchanged on both a year-over-year and a quarter-over-quarter basis at 10.0%.