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In September, the Fed cut rates by half a percent, the first drop in rates since March of 2020.

Another half percent drop is expected by the end of the calendar year, and likely a full percent over 2025. As interest rates decrease, cap rates generally fall as well; lower interest rates will also mean increases in liquidity, plus refinancing opportunities for borrowers near the end of their leases. In the LA metro area, downturns in the tech and entertainment sectors have continued to push office and retail leasing down.

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.