With Office Deals Scarce, Picky LA Investors and Lenders Choose Just the Right Project

Allen Matkins partner, Alain R’bibo was recently quoted in the Real Deal. Investors evaluating office property purchases prioritize geography and tenant demand, but in Los Angeles, the complex market dynamics make investors cautious. While upscale neighborhoods like Century City and Hollywood thrive, many areas lack a clear anchor industry, making it challenging for investors to predict building futures. Unlike San Francisco, where downtown has a clear tenant pool of technology firms, Los Angeles faces uncertainties, with Downtown L.A. struggling and high-rise office space presenting a challenging environment.

By contrast, San Francisco’s downtown has a “more obvious tenant pool,” said Alain R’bibo.

Downtown L.A., traditionally home to law firms, is losing some to Century City, the high-rise hub of the Westside. In December, Sidley Austin signed a deal to move its headquarters out of Downtown L.A. and into JMB’s 1950 Avenue of the Stars once the building opens in 2026. 

“I don’t know that there’s a story there about who is going to come up and take all of this high-rise office space,” R’bibo said of Los Angeles. “It’s a much more challenging environment.”

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