As the summer gets hotter in Los Angeles County, commercial real estate investment sales are also heating up.
Nearly 7.3 million square feet of commercial property traded hands last month for a total sales volume of $2.1 billion, Commercial Observer reported, citing findings by NAI Capital and CoStar.
The sales represent a 22 percent increase in square footage sold compared to July 2025, as well as a 28.5 percent rise in dollar volume from the same period. The jump builds on increasing momentum in recent years, as sales volume overall increased 75 percent from July 2024.
Multifamily property attracted the majority of capital invested in the commercial sector, according to Commercial Observer. The climbing sales come amid a shaky environment for investors as borrowing costs remain elevated and long-term Treasury yields sit at multi-year highs.
More than 3.4 million square feet of multifamily properties sold for upwards of $1.2 billion, accounting for 58 percent of all investment in L.A. County in July. Multifamily sales volume was up 55 percent year over year and nearly 166 percent from July 2024 levels. At the same time, average pricing increased 28.7 percent to $376 per square foot.
Besides multifamily, the retail sector also saw an upward tick in sales. More than 1.2 million square feet traded hands, equating to a sales volume of $402 million — up 40 percent from a year prior and nearly double the total from two years ago.
The industrial market saw 1.3 million square feet of space sold in July, representing a 71 percent increase from a year before, though dollar volume remained flat at $214 million, and average pricing dropped 3.6 percent to $273 per square foot.
Meanwhile, the office market was the only sector to see declines in both sales volumes and square footage. Approximately 1.3 million square feet of offices traded for $262 million, representing a 9.7 percent fall by square footage and 23.4 percent in dollar value from a year ago. Average prices decreased 23.5 percent year over year to $250 per square foot.
— Chris Malone Méndez
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