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Office Sales Volume Plummets in 3Q

Office sales volume in Los Angeles dropped 60% in the third quarter and 55% year-over-year, according to research from Commercial Café.

By Kelsi Maree Borland | Updated on November 08, 2017

Doug ResslerOffice sales volume has fallen this year, compared to the same time last year, according to ta report from Yardi‘s Commercial Café. In Q317, office sales were down 60% and 55% year-over-year. Despite the drop, L.A. still ranks number one in office sales volume in the country and ended the third quarter with $934 million in office sales. There were 12 total sales during the quarter, which totaled 2.33 million square feet trading hands. The average price per square foot continued to trend upward to $38, a 28% increase from the second quarter. To find out more about trends in office sales, we sat down with Commercial Café’s Doug Ressler.

GlobeSt.com: What led to this significant drop in L.A. office sales volume?

Doug Ressler: The L.A. metro office market completed Q3 with nearly $934 million in office sales, marking a 60% drop from the previous quarter, and a 55% decrease year-over-year. However, the L.A. market typically experiences a Q2 to Q3 seasonality downturn. The Q3 2016 sales versus Q3 2017 sales reflects a modest downturn of 6% in square footage sales and a 15% [$423.69 vs.$359,41] decrease in price per square foot.

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