The Los Angeles Commercial Real Estate Market

Los Angeles, CA, offers a thriving, top-tier metro with a massive population, surging economic growth, and plentiful commercial real estate opportunities for ambitious investors and tenants alike.

The sprawling MSA features a sizable CRE inventory within its thousands of square miles, dozens of cities, and multiple regions. Principals and expanding businesses consider Los Angeles a premier area in which to invest in commercial property. Crexi proudly equips property seekers with the tools to identify Los Angeles commercial real estate that precisely fits their needs.

Los Angeles commercial property brokers representing Los Angeles property for sale harness Crexi's powerful listing and lead management platform to interact with active buyers and tenants. Using Crexi's software suite, they can interact with hundreds of leads, save time, and close more deals faster.

As of this writing, Crexi has helped brokers and buyers transact more than $610 billion in property sales and marketed assets, representing over $7 trillion in total.

Crexi proudly serves Los Angeles, Long Beach, Anaheim, Pasadena, the Inland Empire, and the Greater Los Angeles metro as the region's fastest-growing digital CRE platform.

The State of Los Angeles Commercial Real Estate 

Los Angeles is the largest city in the state and the second-largest in the US. Located in Southern California, it is a major hub for culture, entertainment, and industry in the United States and a gateway to the Pacific Rim.

The greater Los Angeles metropolitan area is home to numerous submarkets, each with a unique blend of residential, commercial, and industrial spaces. Prime areas such as Downtown LA, Beverly Hills, and Santa Monica boast historic landmarks, commercial real estate, and 24/7 business districts. 

Los Angeles's economy is easily one of the most dynamic in the world, driven by key sectors such as entertainment, technology, aerospace, and international trade. Global headquarters for companies like Disney, Warner Bros., and Edison International highlight the city as an epicenter for innovation and creative industries. 

The LA metropolitan area is experiencing significant economic and population growth, fueling robust real estate development. From high-rise office buildings to mixed-use developments, Los Angeles' commercial real estate market is constantly evolving to meet the demands of its growing population and thriving business base. 

Los Angeles Regional Breakdown

The Los Angeles region has recently seen a steady influx of new residents. Some areas have experienced slower growth due to rising housing costs and urban density. However, suburban regions and outlying communities have flourished by offering more affordable living options and attracting a younger workforce.

• The city of Los Angeles is home to more than 3.8 million, with nearly 12.9 million residing in the Los Angeles-Long Beach-Anaheim metropolitan area.
• The population of LA increased by 0.2% last year, aligning with the growth rate in the state.
• Greater Los Angeles comprises the counties of Los Angeles, Orange, Ventura, Riverside, and San Bernardino.
• The metro area's most populous cities include LA, Long Beach, Anaheim, Santa Ana, Fontana, and Irvine.
• The median age is 38.5, about the same figure as in the US.
• According to data on CensusReporter.org, per capita income is $45,171, and median household income is $87,743, both figures higher than those in the United States.

Los Angeles Job Market

Los Angeles is an economic powerhouse on the West Coast and a global leader in several key industries, including entertainment, technology, aerospace, and international trade. Major companies like Google, Hulu, Northrop Grumman, and the Port of Los Angeles help keep job growth strong and economic activity robust. The city's tech sector has grown substantially, with Silicon Beach as a hotspot for startups and established tech firms.

• The metropolitan area's GDP is more than $1.2 trillion, about the same as or slightly greater than those in Australia, Spain, Sweden, Switzerland, and the Netherlands.
• The unemployment rate is 5.9% (June 2024), with the education and health services, leisure and hospitality, and government sectors reporting the largest increases in employment.
• Largest employers in Los Angeles County include the County and City of Los Angeles, Los Angeles Unified School District, University of California, the Federal Government, Kaiser Permanente, Northrop Grumman Corporation, Amazon, and Target.
• Los Angeles is known as the “Entertainment Capital of the World” and is home to major film studios such as Warner Bros, Walt Disney Animation, Sony Pictures, and Paramount Pictures. 
• Eight Fortune 500 companies are headquartered in Los Angeles, including The Walt Disney Co., Molina Healthcare, Edison International, Live Nation Entertainment, Farmers Insurance Exchange, and Skechers USA.
• WalletHub ranks Los Angeles among the best cities for STEM jobs, with the second-highest STEM friendliness rank (based on criteria including mathematics performance, the number of best engineering schools, and the quality of engineering universities).
• Emerging Trends in Real Estate 2024 lists the LA metro area as one of the top US Life Sciences markets in the country, boasting an occupancy rate of 97.6%.
• Los Angeles is home to several world-renowned universities and colleges, including the University of California, Los Angeles (UCLA), University of Southern California (USC), and California State University, Los Angeles (CSULA).
• Nearly 38% of residents hold a bachelor’s or postgraduate degree, a rate slightly higher than the US.
• Notable mixed-use real estate projects in LA include Hollywood Park and West End, home to residential, office, retail, and entertainment venues.
• Century City is the largest office project underway in the metro area, with more than 731,000 SF of Class A space in 37 stories.
• The Los Angeles transportation infrastructure includes major highways like Interstates 5, 10, and 405, the Port of Los Angeles, Los Angeles International Airport (LAX), Hollywood Burbank Airport (BUR), and Long Beach Airport (LGB).

Los Angeles Industrial Market

The industrial market in Los Angeles has seen a significant increase in vacancy rates, reaching the highest levels in a decade due to ongoing occupancy losses. Leasing activity rose in Q2 2024, marking the first increase in four quarters. However, the surge in new vacant supply and ongoing construction has driven availability rates upward and asking rents down.

Market overview (Cushman & Wakefield Q2 2024 Greater Los Angeles Industrial Report) 

• Inventory: 801,483,450 SF
• Vacancy rate: 4.5%
• Net absorption: -7,637,108 SF (YTD)
• Under construction: 7,220,060 SF
• Leasing activity: 12,578,600 SF (YTD)
• Key leases by tenant: KW International, Forward Air, Prime Freight Logistics, Agron
• Largest submarkets: LA Central, LA South, San Gabriel Valley, LA North

Crexi Insights

These are the most recent Los Angeles industrial lease and sales trends from Crexi Insights (as of May 2025):

For Lease (active)

• Asking rate/SqFt (median): $21 per year
• Median SqFt/listing: 4,996
• Days on market: 132
• Total listings on Crexi: 530 spaces

For Sale (active)

• Median asking price: $2.6 million
• Price/SqFt: $348
• Asking cap rate: 5%
• Days on market: 139
• Total listings on Crexi: 184

Sales Comps (past 12 months)

• Median sold price: $1.9 million
• Sold price/SqFt: $293
• Total sales volume: $1.4 billion
• Median SqFt sold/transaction: 6,133
• Total SqFt sold: 3.7 million 
• Days on market (median): 176

Sales Comps (previous 12 months) 

• Median sold price: $2.1 million
• Sold price/SqFt: $342
• Total sales volume: $1.3 billion
• Median SqFt sold/transaction: 5,581
• Total SqFt sold: 4.1 million 
• Days on market (median): 97

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Los Angeles Office Market

The Los Angeles office market is undergoing major shifts, marked by rising vacancy rates and declining lease prices. As vacant spaces continue to return to the market, a prolonged period of adjustment is projected, with net occupancy gains not expected until at least 2026. Despite these challenges, the Westside remains a hotspot for leasing activity. Century City is capturing a substantial share of the region's deals as occupiers migrate from downtown areas.

Market overview (Cushman & Wakefield Q2 2024 Greater Los Angeles Office Report)

• Inventory: 212,945,793 SF
• Vacancy rate: 24.4%
• Net absorption: -1,973,677 SF (YTD)
• Under construction: 2,578,779 SF
• Leasing activity: 4,282,513 SF
• Key lease transactions by tenant: Universal Music Group, FPM Development, Union Bank
• Largest submarkets: LA West, LA South, LA North, Downtown CBD

Crexi Insights

If you're in search of the freshest data on the Los Angeles office market, turn to Crexi Insights as your first choice. The platform provides up-to-date data on the city's commercial real estate market, including lease trends, sale listings, and comparables.

Here are the latest stats and trends as of May 2025:

For Lease (active)

• Asking rate/SqFt (median): $30 per year
• Median SqFt/listing: 1,677 
• Days on market: 272
• Total listings on Crexi: 2,953 spaces

For Sale (active)

• Median asking price: $4 million
• Price/SqFt: $515 
• Asking cap rate: 6%
• Days on market: 143
• Total listings on Crexi: 189

Sales Comps (past 12 months)

• Median sold price: $2.3 million
• Sold price/SqFt: $453
• Total sales volume: $1 billion
• Median SqFt sold/transaction: 4,196 
• Days on market (median): 169

Sales Comps (previous 12 months) 

• Median sold price: $2.2 million 
• Sold price/SqFt: $457
• Total sales volume: $923.7 million
• Median SqFt sold/transaction: 4,829  
• Total SqFt sold: 3.3 million  
• Days on market (median): 156 

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Los Angeles Retail Market

The retail market’s performance in the Los Angeles metro area is mixed. Landlords are seeing a slight decline in leasing activity, while others are having trouble retaining tenants. Despite a negative net absorption, average asking lease rates have reached levels not seen since 2007. The development pipeline remains active, bringing significant new inventory to market.

Market overview (CBRE Greater Los Angeles Retail Figures Q1 2024)

• Inventory:  202,179,809 SF
• Vacancy rate: 6.7%
• Net absorption:  -399,338 SF (YTD)
• Under construction: 1,022,253 SF
• Leasing activity: 1,002,728 SF
• Key leases by tenant: COSM, Vallarta Supermarket, LA Kings Valley Ice Center, Tesla Motors
• Largest submarkets (by inventory): South Bay, San Gabriel Valley, Central Los Angeles, San Fernando Valley

Crexi Insights

Los Angeles retail lease and sales trends from Crexi Insights (as of May 2025):

For Lease (active)

• Asking rate/SqFt (median): $33 per year
• Median SqFt/listing: 1,772 
• Days on market: 278
• Total listings on Crexi: 1,829 spaces

For Sale (active)

• Median asking price: $3.3 million
• Price/SqFt: $452
• Asking cap rate: 5.5%
• Days on market: 128
• Total listings on Crexi: 372 

Sales Comps (past 12 months)

• Median sold price: $1.9 million
• Sold price/SqFt: $463
• Total sales volume: $1.8 billion
• Sold cap rate: 5.2%
• Median SqFt sold/transaction: 3,616 
• Days on market (median): 169

Sales Comps (previous 12 months) 

• Median sold price: $2 million 
• Sold price/SqFt: $512
• Total sales volume: $1.5 billion
• Median SqFt sold/transaction: 3,671  
• Total SqFt sold: 2.3 million  
• Days on market (median): 188 

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Los Angeles Multifamily Market

The Los Angeles multifamily market remains strong overall. Investors are seeing a moderate increase in vacancy rates, a slight decline in rental rates, and a slowdown in new apartment deliveries. However, submarkets like the San Fernando Valley and South Bay-Long Beach have particularly tight rental markets. Despite economic challenges, investors continue to show strong interest in LA’s apartment market, which is driven by ongoing employment growth and solid demand for multifamily housing.

Market overview (Kidder Mathews Los Angeles Multifamily Market Report Q2 2024)

• Total housing units: 4,788,314
• Multi-unit inventory: 2,011,092 units
• Vacancy rate: 5.0%
• Average asking rent: $2,209
• Net absorption (YTD): 2,345 units
• Under construction: 3,671 units
• Submarkets with most construction: Little Armenia, South Park, Downtown Long Beach, Chandler Park

Crexi Insights

Here are the most recent insights from Crexi for the Los Angeles multifamily market (as of May 2025):

For Sale (active)

• Median asking price: $2.48 million
• Price/SqFt: $414
• Price/Unit: $334,000
• Asking cap rate: 4.7%
• Days on market: 104
• Total listings on Crexi: 814

Sales Comps (past 12 months) 

• Median sold price: $861,000
• Sold price/SqFt: $500
• Sold price/unit: $616,000
• Total sales volume: $16.8 billion
• Sold cap rate: 4.9%
• Total SqFt sold: 33.3 million
• Days on market (median): 117

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Get more in-depth Los Angeles market data with Crexi Intelligence.