- Institutional capital is gradually returning to downtown Los Angeles office sales. Following a trough of $64.7 million in 2022 when the 10‑year Treasury reached 3.88%, annual transaction volume recovered to $409 million in 2023 and $444 million in 2024. This stabilization occurred with benchmark yields persistently above 4%, indicating that market participants have begun to internalize a higher‑for‑longer rate environment.
- The pending $210 million acquisition of Bank Of America Plaza by Capital Group exemplifies how owner‑occupant buyers continue to transact even at current yield levels of 4.30%. Similarly, Brookfield’s $210 million disposition of Figueroa at Wilshire to Uncommon Developers demonstrates that trophy assets are clearing the market, contributing to price discovery and a more stable valuation floor for downtown office properties.
- Kevin Warsh’s proposal to aggressively reduce the Federal Reserve’s $6.7 trillion balance sheet would likely pressure borrowing costs upward. Nevertheless, the sustained recovery in annual sales from the 2022 low through the $400‑450 million range observed in 2023‑2025 suggests that investors have already priced in sustained yield pressure, rather than awaiting imminent rate cuts.
Higher for longer, but buying anyway: LA office sales find a floor
Los Angeles Office Market: Sales Volume and 10-year Treasury Rate
April 27, 2026
