1990s vintage office properties have emerged as Los Angeles' most liquid office cohort, with cumulative sales over the past five years totaling 30.4% of existing inventory, significantly exceeding the segment's 17.4% vacancy rate. The data suggests investors remain highly active in value-add opportunities where pricing has adjusted and leasing upside remains achievable despite broader challenges across the office sector.
2020s vintage office assets stand apart from the broader dataset, exhibiting relatively strong transaction activity despite the highest vacancy rate among all vintages. Although the cohort's smaller inventory base may amplify its liquidity rate, elevated vacancy continues to reflect the lingering effects of pandemic-era workplace shifts, slower leasing velocity, and the challenge of backfilling large blocks of newly delivered space.
Conversely, 2010s vintage assets exhibit the lowest liquidity rate in the dataset at just 6.7% despite maintaining one of the lowest vacancy rates at 8.1%. Many owners acquired these buildings during a historically favorable interest-rate environment and continue to benefit from healthy occupancy levels, reducing the incentive to transact and limiting available acquisition opportunities for investors.
Los Angeles
Shane Halpern