Real Estate
LA’s Third-Tallest Tower Sells for 45% Below 2014 Price
- Transaction is biggest office deal in downtown LA this year
- Vacancy rate nears 30% for office buildings in downtown LA
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Aon Center, the third-tallest tower in Los Angeles, has sold for $147.8 million — about 45% less than its last purchase price in 2014 — as office values continue to suffer from high vacancies and financing costs.
The sale is the largest office deal this year in downtown Los Angeles, which has been among the hardest-hit US office markets since the pandemic as remote work becomes more popular and escalating interest rates drive down values, wiping out owners’ equity.