May 21, 2025 Your Source for Brentwood News

Office Building Sales Plummet by 76% in Los Angeles

Transfer tax and low interest rates contributing to decline in L.A. office sales

By Dolores Quintana

In the city of Los Angeles, on the eve of Measure ULA taking effect, office sales have dropped significantly in the first quarter of this year as reported by The Real Deal.com. The totals are $154 million versus the $659 million from the same period last year. These figures come from Yard Matrix, a firm that examines the data related to commercial real estate sales and research. The firm analyzed and tracks data for offices over 25,000 square feet. 

In addition to the drop in sales, the valuation of commercial real estate has also decreased from $420 per square foot in 2022 to $254 per square foot in 2023 about a 39 percent drop in value.  

The temptation would be to blame this drop on Measure ULA, but more than one city in the United States faces similar issues with valuation and commercial sales because of the increased difficulty of raising acquisition capital. In national totals, the amount of office sales has also plunged from last year’s total of $4.6 billion to this year’s receipts of $12 billion according to figures from Yard Matrix. 

The city government has admitted that it is likely that the first year of revenue under Measure ULA is likely to be less than hoped, but still, projections for the revenue is $672 million starting in July and ending on June 30, 2024 but has also factored in the national drop in sales into the equation. The original estimate of Measure ULA revenues was $900 million. Vacancy rates remain high in Los Angeles since the last quarter of 2023 when 27% of offices in Los Angeles were vacant according to CBRE, but these figures have remained high since the beginning of the pandemic.

Measure ULA is a tax created to help the city fund affordable housing projects and provide resources to tenants at risk of homelessness and levies a tax of 4% for properties conveyed over $5,000,000, but under $10,000,000, and 5.5% for properties conveyed at $10,000,000 or more.

Related Posts

Former Inmate Firefighters to Lead Discussion on California’s Prison Firefighting Program

May 20, 2025

May 20, 2025

Panel Explores Ethics and Reform of California’s Inmate Firefighting Program Formerly incarcerated firefighters will take center stage at the Hammer...

State Farm Seeks New Insurance Rate Hikes for California Homeowners and Renters

May 20, 2025

May 20, 2025

Insurer Aims to Raise Premiums by up to 52% for Some Policyholders by 2026 Just one week after receiving approval...

Mayor Bass Launches Major Initiative to Boost Film Production in Los Angeles After Years of Neglect

May 20, 2025

May 20, 2025

Facing Industry Setbacks, L.A. Rolls Out Plan to Attract On-Location Shoots In a renewed effort to preserve Los Angeles’ status...

Lisa Vanderpump, Ken Todd Settle Labor Lawsuit with Former Pump Employees for $490K

May 20, 2025

May 20, 2025

Judge Approves Final Class-Action Settlement in Long-Running Wage Dispute Lisa Vanderpump and her husband, Ken Todd, have reached a final...

Michelin Three Star Institution Brings 20th Anniversary Culinary Experience to Beverly Hills

May 20, 2025

May 20, 2025

Grant Achatz’s Alinea Heads to Beverly Hills for Summer Residency Renowned chef Grant Achatz and his team at Alinea, Chicago’s...

Thieves Use Cars to Smash Into Fairfax Stores in String of High-End Burglaries

May 20, 2025

May 20, 2025

LAPD Investigates String of Vehicle-Driven Break-Ins at Specialty Boutiques Storeowners in the Fairfax District are grappling with concerns about safety...

Celebrity-Owned Cannabis Dispensary The Woods WeHo Hit in Smash-and-Grab Burglary

May 20, 2025

May 20, 2025

 Shop Co-founded by Woody Harrelson, Bill Maher, and John McEnroe Targeted The high-profile cannabis dispensary co-owned by actor Woody Harrelson,...

Brentwood Weekly Crime Report: May 3, 2025 – May 10, 2025

May 19, 2025

May 19, 2025

One Robbery and One Theft Incident Logged During the Week  Lead Officer Matthew Kirk has compiled the newest list of...

Author Craig Mod to Present New Walking Memoir at Diesel Bookstore in Brentwood

May 19, 2025

May 19, 2025

Book Discussion at Free Outdoor Event Featuring Pizza From Prime Pizza Writer and photographer Craig Mod will appear at Diesel,...

Getty Villa Museum to Reopen After Months-Long Closure Due to Palisades Fire

May 19, 2025

May 19, 2025

Limited Public Access Resumes With Major New Exhibition on Mycenaean Greece The Getty Villa Museum will reopen to the public...

Woman’s Car Stolen from UCLA Valet in Santa Monica While Visiting Husband in ICU

May 19, 2025

May 19, 2025

Couple Left Without Vehicle During Cancer Treatment After Thief Stole Keys Brittney Mickles-McQuirter, a local Montessori school teacher, says she...

Pasjoli to Temporarily Close for Redesign, Unveil New Menu June 12

May 19, 2025

May 19, 2025

Santa Monica French Bistro Will Pause Service Starting June 1 Acclaimed French bistro Pasjoli will close temporarily starting on June...

Hollywood Man Charged in Deadly Attempted Robbery on 3rd Street Promenade

May 19, 2025

May 19, 2025

Santa Monica Police Say Planned After-Hours Sale Turned Violent Hollywood resident Karen Melikyan, 41, has been arrested and charged in...

Del Rey Man Pleads Guilty to Child Exploitation Using Social Media Apps

May 19, 2025

May 19, 2025

Man Used Apps to Contact and Coerce Children to Produce Explicit Images Mark David Wallin, 44, of the Del Rey...