- West Los Angeles office sale prices exceeded asking prices for three consecutive quarters from Q4 2021 through Q2 2022, reaching a peak premium of $571 per square foot in Q2 2022. The outperformance coincided with the Federal Reserve maintaining its benchmark interest rate near zero to support the post-pandemic economic recovery, creating favorable financing conditions that fueled investment sales activity across West Los Angeles.
- Beginning in Q3 2022, sale prices fell below asking prices for the next 12 consecutive quarters, with the discount widening to a cycle low of $609 per square foot in Q4 2023. The decline aligned with the Federal Reserve's aggressive interest rate hiking cycle, which pushed the federal funds rate to approximately 5.33% between Q4 2023 and Q2 2024. At the same time, the implementation of Measure ULA increased transaction costs on qualifying property sales within the City of Los Angeles, creating an additional headwind for investment activity across several West Los Angeles submarkets.
- Pricing momentum has improved considerably over the past year. Through Q2 2026, sale prices have exceeded asking prices in three of the last four quarters, including a $306 per square foot premium in Q2 2026, the strongest positive spread since Q2 2022. Although interest rates remain above 3%, the Federal Reserve has shifted toward monetary easing, and buyers appear to have adjusted to a higher-rate environment. The return of sale prices above asking suggests renewed confidence in West Los Angeles office investment fundamentals despite elevated borrowing costs and the continued impact of local transfer taxes.
West Los Angeles sale pricing moves above asking levels after nearly three years
West Los Angeles Sale Pricing Moves Above Asking Levels After Nearly Three Years
July 31, 2026
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