Los Angeles Commercial Real Estate Market: K2 Investments' Q2 2025 Insights

At K2 Investment, we believe staying ahead of market trends is crucial for success.

That's why we're taking a closer look at the top commercial property transactions in the

Los Angeles area from the second quarter of 2025, as highlighted by CoStar. These

significant deals offer valuable insights into which sectors are thriving and where smart

money is flowing.

The data reveals a dynamic market, with a strong mix of office, multifamily, retail, and

industrial properties changing hands in high-value transactions. This diversity

underscores the resilience and attractiveness of the Los Angeles commercial real estate

landscape.

Here are some of the standout transactions that defined the market this quarter:

Key Takeaways from Q2 2025 Top Sales:

• Diverse Property Types: The top deals weren't confined to a single asset class.

  We saw major sales in a variety of sectors, from studio space in West Hollywood

  to industrial parks in Commerce, and multifamily complexes in Glendale and Los

  Angeles. This broad activity suggests investor confidence across the board.

• High-Value Transactions: The deals consistently crossed the nine-figure mark,

  with the highest reaching nearly $235 million. These substantial investments

  signal that institutional and private investors are willing to deploy significant

  capital in key Los Angeles submarkets.

• Notable Submarket Activity: The transactions were spread across different

  parts of the Los Angeles metro, including:

  • West Hollywood: The massive $234.7 million sale of The Lot Studio

    Stages portfolio to a new fund with a limited partner demonstrates the

    ongoing demand for specialized, creative-economy real estate.

  • Playa Vista: Barings’ acquisition of two office buildings for over $150

    million highlights the continued appeal of modern, well-located office

    space.

  • Glendale & Hollywood: The sales of The Adeline apartment complex and

    The 5550 on Hollywood Blvd. reflect the strong appetite for multifamily

    properties, with prices per unit reaching over $500,000.

  • Valencia: The acquisition of the River Oaks Shopping Center by Nuveen

    as part of a larger portfolio shows that high-quality, fully-leased retail

    centers with strong anchors remain highly sought after.

•  A Mix of Buyers and Sellers: The transactions involved a mix of institutional

  giants like CIM Group, Clarion Partners, and Nuveen, as well as private and

  regional players like The Sobrato Organization and Kingsbarn Realty Capital.

  This indicates a healthy market with a wide range of participants.

A Deeper Look at Select Deals:

The Lot Studios Stages: 1041 N Formosa Ave, West Hollywood, CA 90046 (CoStar)

• The Lot Studio Stages Portfolio, West Hollywood: In a significant portfolio

  deal, CIM Group sold 14 properties including studio and office space. This

  internal transfer to a new fund, valued at nearly $235 million, underscores the

  strategic value of production facilities in the entertainment capital of the world.

•  The Adeline, Glendale: The $126 million At K2 Investment, we believe staying ahead of market trends is crucial for success.

  
  

  That's why we're taking a closer look at the top commercial property transactions in the

  
  

  Los Angeles area from the second quarter of 2025

  complex highlights the premium placed on multifamily assets. With rents

  averaging over $3,400 per month, the deal reflects the strong demand for quality

  residential properties in desirable locations.

•  Vine Street Tower, Hollywood: This fully-leased office tower, with a key tenant

  like Skims, sold for $105 million, commanding a price of over $900 per square

  foot. This transaction is a perfect example of a flight to quality, where prime,

  leased assets with strong tenants are fetching top-dollar.

These transactions are a testament to the enduring strength and complexity of the Los

Angeles commercial real estate market. The diversity of assets, high-value deals, and

widespread geographic interest all point to a market ripe with opportunity.

At K2 Investments, we leverage these market insights to identify and capitalize on the

best opportunities for our clients. Whether you're looking to invest in a bustling office

market, a stable industrial property, or a high-demand multifamily complex, our team is

equipped with the knowledge and experience to guide you. Contact us today to learn

how we can help you navigate the dynamic landscape of Los Angeles commercial real

estate.