New Tracker Reveals Over 70,000 Square Feet Cut in 2025 Alone
Los Angeles County’s office market is experiencing a fresh wave of disruption—this time from the federal government. A new report from commercial real estate firm Avison Young reveals that more than 70,000 square feet of office space leased by the U.S. General Services Administration (GSA) has been canceled in the county since the start of 2025, as reported by the LA Business Journal.
According to Avison Young’s Federal Property Pulse Tracker database, Los Angeles has become California’s top contributor to this trend, accounting for 21% of the state’s total square footage of federal lease terminations. Nationwide, only Washington, D.C. has seen more cancellations.
The affected buildings in Brentwood are DOD WHS-designated buildings at 12267 San Vincente Boulevard and 295 North Kenter.
The cancellations have affected various locations throughout the region, including downtown Los Angeles, Brentwood, Mid-City, Wilmington, Rowland Heights, and Monterey Park. Agencies involved in the pullback include the Federal Highway Administration, the U.S. Food and Drug Administration, and the Natural Resources Conservation Service, among others.
Avison Young launched its tracking initiative in response to Elon Musk’s Department of Government Efficiency(DOGE) announcement highlighting widespread lease terminations as a cost-saving measure. As of June 29, the federal government estimates it has saved approximately $155 million through these cancellations.
Although a gradual decline in federal leasing activity has been underway for nearly a decade, the volume of cancellations in 2025 has already outpaced previous years. Between 2015 and 2024, GSA’s demand for new leases steadily dropped, while lease renewal rates climbed by 61%. Yet in the first half of this year alone, the government has eliminated nearly 6 million square feet of leased space nationwide—significantly above the prior average of 1 million square feet in annual reductions since 2016.
