Half of all Los Angeles metro office sales recorded a loss over the 12 months through the second quarter of 2026, matching the national rate as distressed properties continue to trade, according to Bisnow.
The losses are particularly pronounced among larger buildings. Of the 24 Los Angeles office properties larger than 100,000 square feet that changed hands during the period, 79.2% sold for less than their previous purchase price, according to Colliers data.
Several major transactions have been tied to debt pressure. Bank of America Plaza sold for $210 million after its owner defaulted on a $400 million CMBS loan, while the 1.4 million-square-foot Wells Fargo Center North sold for about $150 million after going through foreclosure.
LA Has Yet to Find a New Office Demand Engine
Los Angeles is also trailing some major office markets that have seen stronger demand from key industries.
San Francisco recorded losses on 61% of office sales during the same period, while New York recorded losses on 49%. Both markets have also seen improvements in vacancy and rents.
San Francisco’s office market has benefited from demand tied to AI, while financial services have supported New York. Los Angeles’ entertainment industry, historically a major source of office demand, has reduced its space needs, leaving the market without a comparable source of new demand.
