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The final quarter of 2024 saw diverse trends across hospitality, office, multifamily, industrial, and retail sectors. Hospitality markets faced declining sales volumes, driven by rising cap rates, increased transaction taxes, and economic pressures.

Office markets struggled with high vacancies and slow leasing activity, although condition in Los Angeles, long dire, did begin to show improvement. In the multifamily sector, Los Angeles posted $4.3 billion in sales and the Inland Empire $588 million, as cap rates averaged 5.2% and 5.7%, reflecting softened investor sentiment. Retail showed resilience, despite slowing rent growth. The industrial market in the Inland Empire experienced $5 billion in sales but faced declining rents due to elevated vacancies and sublease availability. Across all sectors, economic uncertainty, higher borrowing costs, and shifting demand patterns shaped a cautious outlook for 2025.

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.