LOS ANGELES—In 2016, the L.A. office market hit its peak. The office investment market broke the record for a 10-year total sales volume, with a total of $9.6 billion in sales volume, according to a joint study between Commercial Café and Yardi Matrix. The spike in activity was even more impressive considering that 2015 saw a decrease in sales volume, and 2014, the previous peak, raked up only $6 billion in sales volume by comparison.
“The L.A. office market experienced a bounce back year in 2016 after a slight decline in 2015 in sales volume and total square feet,” Chris Nebenzahl, a senior analyst at Yardi, tells GlobeSt.com. “Strong demand for office space was generated from continued employment growth especially in sectors such as education and health services and financial activities. The continued revitalization of Downtown L.A. has increased demand for assets and increased commercial property valuations.”
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