Los Angeles investment sales market continues to struggle with low volumes across all sectors

The Los Angeles investment sales market has faced a significant downturn since the COVID-19 pandemic, with 2024 marking the lowest transaction volume on record. In addition to declining sales activity, property valuations have also fallen sharply, with assets trading at substantial discounts compared to pre-pandemic levels.

Following peak transaction activity in 2015 and 2016, the office sector has experienced the most severe decline, with total sales volume reaching only $14.1 billion over the past five years. As remote and hybrid work models reshape office demand, the sector continues to struggle with weak investor appetite and high vacancy rates.

Despite these challenges, market conditions may improve as the Federal Reserve has implemented multiple interest rate cuts over the past year, with additional reductions anticipated. Lower borrowing costs could stimulate capital markets activity. Additionally, the multifamily sector has remained the leading asset class since 2019, offering a more stable investment alternative as capital shifts away from office properties.