June 10, 2023 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

American Cinematheque Debuts First Los Angeles Abel Ferrara Retrospective

June 9, 2023

June 9, 2023

The Weeklong Series Will Have Live Scores, A Concert, and Q & A’s With Ferrara By Dolores Quintana The American...

(Video) Shongee, One Of The Vendors At Made With PRIDE Marketplace

June 9, 2023

June 9, 2023

This interview took place at The Made with PRIDE Marketplace is located on level one in Center Plaza in Santa...

Mayor Karen Bass Has Tested Positive For The Coronavirus

June 9, 2023

June 9, 2023

A Regular Test Revealed That She Had Been Infected  Mayor Karen Bass has tested positive for Coronavirus, and her office...

Officers Administer Life-Saving Narcan to Overdose Victim Found Unconscious on Sawtelle Blvd

June 9, 2023

June 9, 2023

Two Doses Of Narcan Revived The Subject and Saved Their Life Officers on patrol in the vicinity of Sawtelle Blvd...

(Video) Ribbon Cutting At The Grand Opening of Made With PRIDE Marketplace

June 8, 2023

June 8, 2023

Mayor Gleam Davis, Santa Monica City Council member Phil Brock, and Laura Barnehama, Co-Founder of Streetlet. The Made with PRIDE...

The Michelin Guide Announces New California Restaurants Added To The Guide

June 8, 2023

June 8, 2023

Westside Restaurants Are On The List; Designations Will Be Announced on July 18 By Dolores Quintana The MICHELIN Guide is...

Little Jabronis Pop-Up Will Preview The Menu At The Highly Anticipated Best Bet

June 8, 2023

June 8, 2023

Pre-Orders Are Open Now For Friday, Pick-Ups At Chef Neroni’s The Rose Venice  By Dolores Quintana Today, Chef Jason Neroni...

Taste Of The Nation Charity Event Returns To Culver City This Weekend

June 8, 2023

June 8, 2023

Tickets Are Still Available For This Event Benefiting No Kid Hungry Los Angeles’ much-anticipated gastronomic event, Taste of the Nation,...

Tamales Olmeca Brought Some Of The Best Tamales In Town To Striking WGA Writers

June 7, 2023

June 7, 2023

Owner Yunia Fumes Mata Brought Tamale Magic To The Amazon Studios Picket By Dolores Quintana  Yunia Fumes Mata is the...

(Video) Made With PRIDE Marketplace Intro By Laura Barnehama, Co-Founder of Streetlet

June 7, 2023

June 7, 2023

The Made with PRIDE Marketplace is located on level one in Center Plaza in Santa Monica Place which is located...

LA County Board Of Supervisors Pass A Motion Of Support For Striking WGA Writers

June 7, 2023

June 7, 2023

Motion Was Authored By Supervisors Lindsey P. Horvath and Kathryn Barger By Dolores Quintana Today The Los Angeles County Board...

Culver City Fire Department To Hold Annual Pancake Breakfast Fundraiser

June 7, 2023

June 7, 2023

The Breakfast Benefits The Culver City Firefighters’ Foundation  Culver City’s local fire department will celebrate Fire Service Day on Saturday,...

Culver City Summer Movie Vacation Series Debuts This Year

June 7, 2023

June 7, 2023

Ticket Only Three Dollars Per Person At The Culver Theater  By Dolores Quintana For the first time this summer, Culver...

(Video) The Grand Opening Ceremony For Made With PRIDE Marketplace Speech From Santa Monica Mayor Gleam Davis

June 6, 2023

June 6, 2023

The Made with PRIDE Marketplace is located on level one in Center Plaza in Santa Monica Place which is located...

Landlords Could Be Required To Provide Cooling Equipment To All Rental Units

June 6, 2023

June 6, 2023

The Los Angeles City Council Is Now Considering This Recommendation From Committee By Dolores Quintana While many apartments have window...