For the past few years, office market distress, volatile debt markets, and a lack of comparable sales data have made it nearly impossible to gauge value with confidence. You’ve been waiting — not out of hesitation, but out of discipline. Now, there’s a shift.

Distress Meets Opportunity

The Los Angeles office market saw $1.8B in sales in the first half of 2025 — more than double the same period last year. For the first time in recent memory, brokers and institutional investors alike agree: we’ve likely hit the bottom.

The surge isn’t random. Distressed properties are coming to market. Debt is maturing. And motivated sellers are pricing assets at steep discounts. At the same time, a new wave of comparables has restored much-needed transparency to valuations — a key ingredient for confident decision-making.

Let’s be clear—this isn’t a complete recovery. Vacancy still hovers around 25%. Nearly half the inventory remains economically unviable. That’s the tension: assets are distressed, but opportunity is growing.

Lucrum Helps You Cut Through the Noise

At Lucrum, we help investors like you separate signal from noise. When headlines conflict and data seem overwhelming, we provide clarity. We provide investor-focused insights backed by data, helping you identify opportunities, assess risk, and act with confidence.

How to Navigate This Cycle

Here’s what we’re advising our clients:

Watch the Debt: Focus on buildings with expiring loans and soft occupancy. These assets are priced to be moved and repositioned.

Target Core Locations: Trophy buildings in desirable submarkets (like Playa Vista) are attracting institutional capital again. That’s your signal.

Look Beyond the Office: Office distress can create spillover opportunities in multifamily and mixed-use assets nearby.

Rely on the Right Data: With comps returning, it’s finally possible to model pricing and debt scenarios with accuracy.

What the Right Moves Can Unlock

Investors who act strategically now will benefit from:

• Acquiring quality assets at deep discounts
• Resetting debt and offering below-market rents to attract tenants
• Positioning for value appreciation as institutional capital reenters the space
• Building long-term portfolio strength while others stay on the sidelines

Let’s Talk Strategy

If you’re evaluating your portfolio, seeking a 1031 exchange, or planning your next move, Lucrum’s Capital Markets Advisory can help you navigate with clarity and confidence. Let’s map out your next acquisition, refinance, or exit — with the data, discipline, and strategy to back it up.

Schedule a no-obligation strategy call with Lucrum today.

Source: BISNOW