Los Angeles Crash Lets Rich Renters Buy Buildings
Why Los Angeles Office Values Are Falling Downtown Los Angeles office values are sliding as historic vacancy rates expose a deep market imbalance. Record vacancy has reached 22 percent, after briefly easing in 2022, and forecasts point higher. That level signals distress beyond normal leasing cycles and weakens pricing across entire towers. A new study warns the city could lose property tax revenue as vacancies continue to depress assessed values. Demand Reset Post-pandemic remote workforces changed tenant behavior faster than landlords could adjust. New supply delivered before COVID-19 worsened oversupply, while leasing demand failed to return to prior absorption levels. Traditional leasing strategies no longer cover persistent empty floors and falling rents. Similar pressures in Seattle show how soaring interest rates can freeze major real estate projects and deepen market instability. Fiscal Damage Analysts project assessed office values could fall by $69.5 billion over the next d...