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Los Angeles office property tax appeals are significantly affected by key metrics such as market vacancy and market rent. These recent trends are summarized below.
| Vacancy % | Total Available % | Total Inventory SF | Average Asking Rent | |
|---|---|---|---|---|
| Los Angeles Downtown | 22.6% | 30.1% | 33,627,619 | $3.73 |
| West Los Angeles | 17.0% | 26.0% | 58,715,124 | $5.42 |
| Total Class A | 22.2% | 30.0% | 158,580,479 | $4.16 |
| Total Class B | 16.0% | 21.8% | 61,430,460 | $3.07 |
| Total Greater Los Angeles Market | 20.0% | 27.5% | 238,628,318 | $3.85 |
Analysis By WPA 2023
Data By CBRE Market Research 2023
Cities and neighborhoods included in this market include Tri-Cities/Glendale, Downtown Los Angeles, East Downtown, Hollywood Wilshire Corridor, San Fernando Valley, San Gabriel Valley, Mid-Counties, South Bay, West Los Angeles including Beverly Hills, Culver City, Santa Monica, plus Ventura.
Los Angeles County retail building property tax appeals are significantly affected by key metrics such as market vacancy and market rent. These recent trends are summarized below.
| Vacancy % | Total Available % | Total Inventory SF | Average Asking NNN Rent | |
|---|---|---|---|---|
| Antelope Valley | 5.96% | 6.11% | 8,136,430 | $1.56 |
| Greater Downtown LA | 10.21% | 12.00% | 2,658,807 | $3.49 |
| Mid-Cities | 4.14% | 4.20% | 12,308,795 | $2.37 |
| Mid-Wilshire | 5.70% | 5.84% | 3,661,314 | $3.14 |
| San Fernando Valley | 5.72% | 6.34% | 15,014,978 | $2.78 |
| San Gabriel Valley | 5.23% | 5.39% | 20,703,457 | $2.46 |
| Santa Clarita Valley | 5.27% | 5.34% | 5,905,323 | $2.54 |
| South Bay | 3.59% | 3.63% | 20,150,801 | $2.72 |
| South East Los Angeles | 5.00% | 5.00% | 7,269,313 | $2.05 |
| Tri-Cities | 6.64% | 6.64% | 9,204,962 | $3.32 |
| Ventura | 4.84% | 5.12% | 22,339,323 | $2.34 |
| West Los Angeles | 11.47% | 12.55% | 5,320,161 | $5.80 |
| Greater Los Angeles Retail Market | 5.36% | 5.61% | 132,673,664 | $2.77 |
Analysis By WPA 2023
Data By CBRE Market Research 2023
Some of the largest cities in the County of Los Angeles by population include: Los Angeles, Long Beach, Santa Clarita, Glendale, Lancaster, Palmdale, Pomona, Torrance, Pasadena, East Los Angeles, El Monte, Downey, Inglewood, West Covina, Norwalk, Burbank, Compton, South Gate, Carson, Santa Monica, Culver City, West Hollywood, and Beverly Hills.
Los Angeles County hotel property tax appeals are significantly affected by key metrics such as market vacancy and market rent. These trends are summarized below.
| UNITED STATES DATA | Total | Change From 2019 |
|---|---|---|
| Occupancy | 62.70% | -4.90% |
| ADR | $149.00 | 13.6% |
| RevPAR | $93.27 | 8.10% |
Analysis By WPA 2023
Data By STR, TE, February 3, 2023 (Published), As of December 31, 2022
2022 Year End Indicators
* Uneven, non-linear recovery across industry segments.
* Overall construction pipeline activity is down. Some December 2022 growth in construction is seen.
Los Angeles County industrial property tax appeals are significantly affected by key metrics such as market vacancy and market rent. These trends are summarized below.
| Vacancy % | Total Available % | Total Inventory SF | Asking Rent Avg Mfg | |
|---|---|---|---|---|
| Commerce/Vernon | 0.70% | 3.80% | 164,185,277 | $1.43 |
| Downtown Los Angeles | 1.70% | 5.70% | 107,189,299 | $1.55 |
| Mid-Counties | 0.50% | 2.10% | 112,864,743 | $1.74 |
| Greater San Fernando Valley | 0.60% | 1.60% | 179,277,352 | $1.54 |
| San Gabriel Valley | 1.30% | 2.70% | 161,255,902 | $1.71 |
| South Bay | 0.80% | 3.50% | 221,055,548 | $1.95 |
| Los Angeles County | 0.90% | 3.10% | 945,828,121 | $1.66 |
Analysis By WPA 2023
Data By CBRE Market Research 2023
Some of the largest cities in the County of Los Angeles by population include: Los Angeles, Long Beach, Santa Clarita, Glendale, Lancaster, Palmdale, Pomona, Torrance, Pasadena, East Los Angeles, El Monte, Downey, Inglewood, West Covina, Norwalk, Burbank, Compton, South Gate, Carson, Santa Monica, Culver City, West Hollywood, and Beverly Hills.
Los Angeles County multi-family property tax appeals are significantly affected by key metrics such as market vacancy and market rent. These trends are summarized below.
| Vacancy % | Total Inventory SF | Market Rent Avg. (/Unit) | |
|---|---|---|---|
| Antelope Valley | 5.20% | 14,706 | $1,815 |
| Brentwood/Westwood/Beverly Hills | 5.10% | 59,053 | $3,635 |
| Burbank/Glendale/Pasadena | 3.80% | 105,548 | $2,918 |
| Downtown Los Angeles | 6.10% | 47,275 | $2,952 |
| East Los Angeles | 3.00% | 49,550 | $2,612 |
| Hollywood | 4.50% | 91,912 | $2,956 |
| Long Beach | 4.70% | 74,843 | $2,584 |
| Mid-Wilshire | 3.90% | 119,560 | $3,036 |
| North San Gabriel Valley | 4.10% | 30,206 | $2,234 |
| Northridge/Northwest San Fernando Valley | 4.10% | 35,000 | $2,350 |
| Palms/Mar Vista | 3.70% | 42,907 | $3,322 |
| Santa Clarita Valley | 4.20% | 14,621 | $2,662 |
| Santa Monica/Marina Del Rey | 3.80% | 47,273 | $3,835 |
| Sherman Oaks/North Hollywood/Encino | 3.50% | 47,885 | $2,743 |
| South Bay | 4.50% | 60,044 | $3,089 |
| South Los Angeles | 2.80% | 132,036 | $2,418 |
| South San Gabriel Valley | 3.10% | 10,956 | $2,304 |
| Southeast Los Angeles | 3.60% | 38,496 | $2,307 |
| Van Nuys/Northeast San Fernando Valley | 2.50% | 86,764 | $2,159 |
| Woodland Hills | 4.30% | 20,834 | $2,744 |
| Los Angeles County | 4.20% | 1,129,469 | $2,794 |
| Antelope Valley | 5.20% | 14,706 | $1,815 |
Analysis By WPA 2023
Data By CBRE Market Research 2023
Some of the largest cities in the County of Los Angeles by population include: Los Angeles, Long Beach, Santa Clarita, Glendale, Lancaster, Palmdale, Pomona, Torrance, Pasadena, East Los Angeles, El Monte, Downey, Inglewood, West Covina, Norwalk, Burbank, Compton, South Gate, Carson, Santa Monica, Culver City, West Hollywood, and Beverly Hills.
Los Angeles is a major western metropolitan area, with the County bordered to the west by the Pacific Ocean, to the south by Orange County, to the north by Ventura and Kern Counties, and to the east by San Bernardino County.
Overall availabilities in the greater Los Angeles office market reached a staggering 30.0% (including both direct vacancy and sublease availabilities) in the first quarter for Class A space, yet exceeding the market-wide average availabilities for all office space of 27.5%. Class B office availabilities were lower at 21.8%. Absorption reached negative 1,277,645 SF for the quarter alone. The total market inventory is 238,628,318 square feet.
Downtown Los Angeles direct vacancy rate was 22.6% with an overall availability of 30.1% and accounted for 384,614 SF of the negative net absorption in the quarter. As high as this may seem, occupancy was yet lower in East Downtown with more than half of all office space as vacant or available, showing availabilities of 54.7% and direct vacancy of 48.7%.
Faring better than the downtown, the West Los Angeles office market experienced direct vacancy of only 17.0%, though even in this market the overall availabilities reached 26.0%. Negative absorption tallied to 156,881 square feet. Nearby, the South Bay market reached 29.5% in availabilities and accounted for a massive 749,892 square feet of negative absorption.
Following the first quarter, the City of Los Angeles experienced effectively a near freeze in property sales over $5 million, as new onerous transfer taxes in these cities took effect on April 1, 2023. For the stated purpose of funding solutions to the growing homeless population, voters approved a November 2022 Proposition ULA in the City of Los Angeles. Marketed to the public under the misnomer of “Mansion Tax,” the additional transfer tax applies to all property selling in excess of $5 million, with yet a higher transfer tax for sales exceeding $10 million. This transfer tax applies to the entire sale price, regardless of prior acquisition price or presence of mortgage debt in place. The result was a spike in sales prior to April 1, 2023 and a steep decline in sales over $5 million after that date. As the outcome of litigation to overturn this new measure is eagerly awaited by the entire real estate community, would be sellers of assets over the $5 million threshold have almost universally sought to hold. The City of Santa Monica passed a similar version of this tax, Measure GS, which took effect as of March 1, 2023, applying to sales over $8 million, resulting in similar legal challenges and a drop-off in property sales. These taxes, and its variations, serve as the latest proof of the old adage that when you tax something you get less of it.
Overall, trends countywide are of vacancy rising to levels rarely seen, and absorption running negative or close to it in all sub-markets. Work from home trends, rising interest rates, and economic adjustments are showing their effects.
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