Los Angeles commercial real estate owners are facing a critical question in 2025: Is now the right time to sell, or should you hold onto your property?

With market conditions shifting due to interest rates, tenant/buyer demand, and economic uncertainty, making the right decision is more complex than ever.

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KEY FACTORS TO CONSIDER

Market Trends & Property Values
DTLA and Los Angeles commercial real estate markets continue to evolve. Warehouse/industrial properties remain in high demand, as do smaller office buildings that are ideal for owner users.

Retail/wholesale properties in prime locations are performing well, but secondary markets require a more strategic approach.

According to CoStar, industrial vacancy in Los Angeles has reached 5.9% as of the first quarter of 2025, up from an all-time low of 1.7% at the beginning of 2022. Understanding how these trends impact your asset class is key to making an informed decision.

Interest Rates & Financing
With interest rates still elevated, financing has become a major factor in pricing. Many investors are pausing acquisitions, while others see an opportunity to negotiate better deals. If you hold a low-interest loan, selling now might not be ideal. However, if you need liquidity, have a vacant property or have a property that is not performing, selling could allow you to reinvest in higher-growth opportunities.

Cash Flow & Tenant Stability
A fully leased, stabilized property may be worth holding onto, especially if you have long-term tenants at market or above-market rents. However, if your property has high vacancies or tenants struggling to meet rent obligations, it may be time to explore repositioning or selling before values decline further.

Tax Implications & 1031 Exchange Opportunities
Selling may trigger capital gains taxes, but a well-executed 1031 exchange can allow you to reinvest proceeds into a more lucrative asset while deferring taxes. If your goal is wealth preservation and portfolio growth, this strategy could be a smart move.

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RECENT MARKET TRANSACTIONS AND TRENDS

To provide further insights, here are some notable and recent transactions and market trends I was involved with in Greater Los Angeles:

Represented the Seller and Buyer: 3755 Beverly Blvd; 14,000 SF office building sold for $8 million to an owner/user.

Represented the Seller: 1115 Magnolia Blvd; 4,325 SF flex/warehouse sold for $2.5 million to an owner/user.

Represented the Buyer: 16810 Ventura Blvd; 9,800 SF office building sold for $6.2 million to an owner/user.

Representing Seller and Buyer: 1710 Cordova St; 25,000 SF warehouse in escrow.

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WHAT’S THE RIGHT MOVE FOR YOU?

Every investor’s situation is different, and the best decision depends on your long-term goals. If you’re unsure about the right course of action, I’d be happy to analyze your property’s value and discuss potential opportunities.

Let’s connect—whether you’re considering selling, holding, or simply exploring options, I can provide insights tailored to your investment strategy.

If you want to keep up on market trends, deals and other commercial real estate content please connect with me on LinkedIn.

Anthony Behar
Executive Vice President/Partner | DRE Lic. 01368565
213.747.8426 office
310.880.2329 mobile
anthony@majorproperties.com
My bio and all of my current listings