Do you own commercial real estate outside the city of Los Angeles?

If so, you may benefit from the city of LA’s disruptive policies that have ground commercial real estate sales in the city to a halt. In April 2023, the city passed Measure ULA, which adds an additional 4% tax on properties valued over $5M, and 5.5% for properties over $10M. The funds are earmarked to address the homelessness crisis in the city. Since the measure was enacted, sales of properties exceeding $5M have fallen dramatically, with sales of industrial properties falling an astounding 63.2%, office falling 45.1% and retail falling 32.6% year over year. 

Despite the significant decline in sales, there remains a strong buyer market in the city, eager to invest in local inventory. As a result, owners of properties in nearby markets are seeing increased demand and a significantly stronger “seller’s market” than there was previously. With the flight of capital from Los Angeles into nearby areas, property owners are well placed to sell for a premium.