Q1 2025 Market Trends Newsletter
May 1, 2025
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Keep up with our latest research and analysis! Articles are a deep dive into special topics. Market Insights round up the latest reporting trends and market movements for the region. Quarterly Newsletters present essential data, statistics, and analysis for every major CRE market sector in Los Angeles and the Inland Empire on a quarterly basis (drawn from CoStar data).
ARTICLES
- Direct to Consumer Brands & Commercial Retail Spaces
- Adaptive Reuse: A Viable Strategy for Office Spaces?
- COVID-19 and Commercial Real Estate
- Right-of-Way Appraisals
- Tax Code Changes
- Assessing Risk to Commercial Properties
- Fair Market Rental Value in Commercially Leased Spaces: Appraisal Methods
CONTACT US
Matthew Lubawy, MAI, CVA
Senior Managing Director
Valbridge Property Advisors
LA@valbridge.com
(626) 486-9327
www.valbridge.com
The Inland Empire and Los Angeles markets returned a mixed performance in Q1 2025.
Hospitality continued to soften due to weaker demand and investor caution, though Palm Springs remained a bright spot. Industrial performed well in Los Angeles, driven by strong demand and limited supply, but the impact of new tariffs remains to be seen for Q2. Multi-family momentum slowed in both regions as affordability challenges and increased concessions weighed on absorption. Office recovery was sluggish, particularly in Downtown LA, where hybrid work continued to suppress demand. Retail stood out as the most resilient sector, with strong interest in grocery-anchored and essential retail driving stable rents and solid investor confidence.
In the following pages, we outline the major market trends in the Los Angeles and Inland Empire market sectors, along with key indicators. In today’s quickly changing environment, we remain ready to assist you with your commercial real estate valuation needs at any time.