Los Angeles Office Leasing Reaches Pre-Pandemic Levels as Multifamily Market Shows Mixed Signals

Los Angeles County's office leasing market has seen a significant rebound, reaching its highest levels since 2019. In the third quarter of 2026, approximately 4 million square feet of leases were signed, reflecting a 15% increase compared to the same period last year. This uptick indicates a recovery in demand for office space as the market stabilizes post-pandemic, according to a report by Commercial Observer ⁵.

In contrast, the multifamily market in Los Angeles presents a more mixed picture. IntellCRE reports a multifamily cap rate of 4.46% and a rent growth of 3.96% [n]. Recent transactions illustrate ongoing activity, including a $6.8 million sale of a 16-unit building in Westchester ³ and a $5.25 million sale of a 24-unit community in Anaheim ⁴. These transactions suggest that while there is movement in the market, pricing and demand may vary significantly across different asset classes.

The expansion of private lender Ascent Developer Solutions further underscores the growing confidence in the Los Angeles real estate market. After surpassing $3.7 billion in originations, the company has expanded its headquarters in the area, signaling increased lending activity and optimism about future market conditions ¹.

Additionally, diverse real estate transactions continue to highlight the activity within the Los Angeles market. A notable example includes the $27 million sale of luxury apartments in Fairview, which showcases the range of investment opportunities available ². While these transactions indicate a vibrant market, they also reflect the variability in pricing trends that investors may encounter.

Overall, the Los Angeles real estate landscape is characterized by a recovery in office leasing and a multifamily market that is active yet diverse in its pricing dynamics. As the market evolves, stakeholders will need to navigate these mixed signals carefully.

Sources

1. Commercial Observer — Private Lender Ascent Expands L.A. Headquarters as It Tops $3.7B in Originations
2. ConnectCRE — HFO Investment Real Estate Closes $27M Sale of Luxury Apartments in Fairview
3. REBusinessOnline — Berkadia Arranges $6.8M Sale of Apartment Building in Los Angeles’ Westchester Neighborhood
4. ConnectCRE — Anaheim Deal Represents Investor’s First Multifamily Buy Since 1993
5. Commercial Observer — L.A. Office Leasing Hits Highest Level Since 2019
6. ConnectCRE — Recent Capital Improvements Drive Van Nuys Apartment Deal