Signs of recovery: Los Angeles office sales activity surges amid historic price decline

• The Los Angeles office investment market is showing its strongest momentum since 2022, with total sales volume reaching $2.6 billion year-to-date in 2025. Transaction activity has been driven largely by discounted asset sales, as buyers capitalize on steeply reduced pricing. Despite the uptick in deal flow, overall pricing remains near historic lows.
• So far in 2025, the average sale price has edged up slightly to $329 per square foot, a modest increase from $323 in 2024. Continued downward pressure on valuations has created attractive opportunities for investors, particularly in the Trophy and Class A segments, where some assets are trading at up to 80% below their original purchase prices from 10–15 years ago.
• While the broader Los Angeles office market continues to recover gradually, the sales sector is emerging as a leading indicator of renewed confidence. Rising transaction volume, even amid depressed pricing, signals a potential turning point. This increase in investment activity could help stimulate leasing momentum and support a broader recovery in fundamentals over the coming quarters.

Los Angeles
Sebastian Bernt