LA office investment sales: A market shaped by shifting tides

• A 93% sales collapse ($4.6B to $0.3B) ravaged Downtown LA’s Class B/C offices during 2007-2009 financial crisis, as frozen credit and soaring vacancies stalled transactions- even with Fed rates slashed to a historic low.
• Foreign capital and near-zero rates propelled sales to a 20-year high of $7.5B by 2016, targeting tech hubs like Silicon Beach and adaptive reuse projects in the Arts District, while speculative bets boomed in Culver City.
• Post-2023 Fed hikes (0.08% to 4.33%) and hybrid work slashed sales to $0.5B (2025 YTD), flooding markets with subleases as tenants downsized. Demand now splits sharply: modern, transit-linked assets thrive, while outdated properties require drastic reinvention.

Los Angeles
Ka Lok Marco Chung