August 1, 2025 The Best Source of News, Culture, Lifestyle for Culver City, Mar Vista, Del Rey, Palms and West Los Angeles

Valuations for Office Buildings in L.A. Drop 39%

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

Last Call: Culver City Wants Your Input in Hiring Its Next City Manager

July 31, 2025

July 31, 2025

Public Survey Open Through August 1 Invites Residents to Weigh In As Culver City begins its search for a new...

1,000 Additional National Guard Troops Withdrawn From LA as Federal Presence Continues to Shrink

July 31, 2025

July 31, 2025

National Guard Presence in Los Angeles Slashed Again Amid Ongoing Rollback Roughly an additional 1,000 National Guard troops have been...

Luxury Watches Stolen From Keanu Reeves Recovered in Chile, To Be Returned to Actor

July 31, 2025

July 31, 2025

Six Rolex Watches Worth Over $120,000 Were Seized in Santiago Police Raid Six high-end watches stolen from actor Keanu Reeves’...

Aging Mindfully: Zen-Inspired Senior Living Takes Shape in Simi Valley

July 31, 2025

July 31, 2025

Two Zen-inspired senior living communities are embracing the reality of aging — consciously. Ensō Village, open since 2023 in Sonoma County,...

Trio of Suspects Busted in $50K Beauty Heist at Culver City Store

July 31, 2025

July 31, 2025

Burglars Try to Flee, But Culver City PD Catches All ThreePolice arrested three suspects late Sunday night following a break-in...

Lulu Hosts Summer Tardeada With Guest Chef From Oakland’s Bombera

July 30, 2025

July 30, 2025

Chef Dominica Rice-Cisneros Joins Alice Waters for a Courtyard Celebration Lulu, the acclaimed restaurant located at the Hammer Museum, will...

Film Review: Together

July 30, 2025

July 30, 2025

By Dolores Quintana Dave Franco and Alison Brie, a married couple in real life, star in Michael Shanks’ gruesomely passionate...

Heidi Klum’s Tropical Erewhon Smoothie Drops Just in Time for Summer

July 30, 2025

July 30, 2025

Supermodel’s Limited-Edition Drink Blends Kiwi, Coconut, and Matcha Erewhon has debuted its newest celebrity smoothie collaboration, this time with supermodel...

‘Challahboration’ Hits Culver City with Sausage-Stuffed Treats and French Cruller Flair

July 30, 2025

July 30, 2025

Nyletta, Nyletta and Challah Dad Serve Summer Sizzle in Culver City A limited-run culinary collaboration is coming to Hi-Lo Liquor...

UCLA Agrees to $6.1 Million Settlement Over Alleged Discrimination During Campus Protests

July 30, 2025

July 30, 2025

Faculty Group Argued Protest Wasn’t Antisemitic; Judge Approval Still Pending UCLA will pay more than $6 million to settle a...

Tsunami Advisory Issued for Los Angeles Coast After 8.7 Quake Near Russia

July 29, 2025

July 29, 2025

Strong Currents, Surges Expected; Residents Urged to Avoid Beaches and Harbors Update from NWS Los Angeles at 6:50 a.m. “Latest...

Brazen Wheel Thieves Hit Beverly Grove, Hollywood Neighborhoods

July 29, 2025

July 29, 2025

Early-Morning Thefts Leave Cars on Blocks; Residents Coordinate  Los Angeles police are investigating a growing number of wheel thefts reported...

Westchester Del Rey Stuns Tucson With 11-Run Inning to Reach World Series

July 29, 2025

July 29, 2025

 Westside Team Heads to Greenville, North Carolina to Compete for Glory  Westchester Del Rey Little League is headed to the...

Felony Charges Dropped for Man in UCLA Encampment Attack After Diversion Deal

July 28, 2025

July 28, 2025

Malachi Marlan-Librett Must Complete Therapy, Anti-bias Training in Hate Crime Case The only person charged with a felony in connection...

Fiesta La Ballona Returns to Culver City With Rides, Food, and Family Fun

July 28, 2025

July 28, 2025

Discounted Unlimited Ride Wristbands Now Available Online Fiesta La Ballona is set to return to Veterans Memorial Park on August...