Los Angeles Market Update: Hot Head Start in Office Sales
- Mar 04, 2021
Los Angeles kicked off the year with strong office transaction activity as ongoing interest in media, technology and professional services-related office space generated $254 million in office sales in January. Assets traded totaled 477,778 square feet of space, per CommercialEdge data. The amount was nearly on par with the investment transactions completed in January 2020, when 477,404 square feet changed hands for $280 million.
All deals comprised single-asset transactions evenly distributed across urban and suburban areas. Three sales totaling 308,358 square feet took place in urban submarkets, while the other three, accounting for the remaining 169,420 square feet, closed in the suburbs. The assets encompass traditional office space, creative office, as well as office/flex space, pointing to strong and diverse investor interest.
Entertainment industry-focused properties continue to be highly sought-after in Los Angeles, already known as a thriving multi-media hub—especially the Burbank and Culver City areas. The largest office deals that closed in January occurred in these submarkets. In a $160 million deal, homegrown company Hackman Capital Partners teamed up with Square Mile Capital Management in the acquisition of 9050 West Washington Blvd., a 172,039-square-foot, three-building office complex in Culver City. The buyer purchased the asset from Toronto-based H&R REIT. The single-tenant complex is fully occupied by Sony’s animation department.
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