LA Office Sales at Strongest Pace Since 2022 as Investors Target Big Discounts
Los Angeles office sales activity has been surging lately amid historic price declines, according to new data from Avison Young.
Its investment market has shown its strongest momentum since 2022, with total sales volume reaching $2.6 billion year-to-date in 2025. Discounted asset sales are largely driving transaction activity as buyers capitalize on steeply reduced prices.
Despite the uptick in deal flow, overall pricing remains near historic lows.
In 2025 so far, the average sale price has risen 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 to 15 years ago.
The sales sector is emerging as a leading indicator of renewed confidence in the broader LA market, which is recovering gradually.
This rising transaction volume signals a potential turning point. It could help stimulate leasing momentum and support a broader recovery in fundamentals over the coming quarters, according to Avison Young.
Looking Beyond Multifamily and Industrial
Sebastian Bernt, market intelligence analyst for the western region at Avison Young, told GlobeSt.com that many investors are looking at other asset types besides their typical multifamily and industrial acquisitions right now.
“Returns have tightened in those sectors, so some groups are taking a hard look at office because pricing has dropped so much,” he said. “For a lot of buyers, the upside feels more compelling here than anywhere else.”
Bernt added that office data is showing investors that, finally, there is “real clarity” on distress.
“For the last couple of years, everyone knew trouble was coming, but nothing was actually hitting the market,” he said. “Now, lenders and servicers are actively working through maturities, so buyers can actually see what’s available and start underwriting again.”
Bernt also said he senses a quiet return of foreign capital with a few Chinese, Korean and Middle Eastern groups starting to “poke around” LA again.
“The general sense is that Los Angeles has corrected more than other gateway markets, so they can enter at pricing that basically didn’t exist before,” he explained.
“Buyers are starting to feel like the leasing risk has mostly bottomed out. Even though fundamentals are still soft, there are early signs of life in entertainment, AI, tech, legal, finance, and real estate. Investors are starting to underwrite stabilization a little sooner, which gives them more confidence to step in right now.”
Source: GlobeSt/ALM