LA Office Sales Break New Records in 2016, CommercialCafe Report Shows
The sales volume hit a 10-year high last year, with Blackstone and Douglas Emmett scoring as top players.
By Ioana Neamt
For the Los Angeles office real estate market, 2016 was the most active year of the past decade. Solid job gains are driving demand across all asset classes, as L.A. County unemployment dropped to 4.7 percent in December 2016, its lowest post-recession rate.
High demand and increased leasing activity in the region are driving prices upward, which in turn attracts investor interest and propels office sales activity. As a result, L.A.’s office market reached new heights in 2016—the highest in the last 10 years.
Our CommercialCafe and Yardi Matrix joint study analyzed commercial office transactions of more than $5 million for office buildings of over 50,000 square feet, from 2012 to 2016, based on Yardi Matrix sales.
Key takeaways:
- Year-over-year sales volume climbed to a 10-year high ($9.6B)
- The average price per square foot reached a 5-year peak
- Blackstone, Douglas Emmett: most active players on the market
- Largest sale of the year: Douglas Emmett, QIA snag 4-building portfolio for $1.3B
- Download raw report data
The full report is available at Commercial Cafe.
