The Market Feels Cold—But Not Dead

Let’s address the elephant in the room: Yes, deal volume is down. Properties are lingering longer, and motivated buyers are thin. Brokers specializing in office and retail are reporting reduced activity, particularly when it comes to larger deals.

A big reason? Uncertainty. With the recent tariff announcements affecting imported building materials and equipment, a lot of investors and developers are taking a wait-and-see approach. Costs are unpredictable, and future asset performance is harder to model. Add in sticky interest rates and economic tension overseas, and it’s no wonder capital has paused.

Office and Retail: Challenging, but Not Dead

If you’re dealing with office space, it’s tough right now. Across Los Angeles—from Culver City to Downtown—office tenants are downsizing, consolidating, or seeking more flexible leases. Hybrid work models aren’t going anywhere. It’s not that there are no deals; it’s that every deal requires heavy negotiation and creativity.

Retail brokers are seeing tight inventory in strong-performing locations (think Melrose or parts of Santa Monica), but tenant appetite is conservative. New brands are hesitant, and national chains are holding back expansion.

That said, medical offices are outperforming. Clinics, dental offices, and wellness facilities are still growing and leasing. If you’re in that niche, you’re probably busy.

Multifamily is Split by Zip Code

I specialize in small to mid-size multifamily investment properties, and I can tell you—location is everything right now.

In wealthier neighborhoods (Hollywood, Venice, DTLA fringe), well-maintained 4–6 unit properties are still selling north of $400K/unit, particularly if they’re stabilized or lightly value-add. These aren’t fire sales. Owners aren’t desperate—but buyers aren’t throwing around cash either. It’s all about the math.

In more affordable zip codes—Wilmington, Hawthorne, Crenshaw, Gardena—you’ll see trades at $100K–$150K/unit, often needing significant work. Buyers are targeting value-add opportunities and demanding cap rates that justify risk.

The key here? Most of these properties never hit LoopNet. Off-market deals and private networks dominate the activity. If you’re only searching online, you’re missing where things are happening.

Tariffs: Real Impact on Seller Expectations

The recent tariffs on steel, aluminum, and HVAC imports are already nudging construction and rehab costs higher. That affects both developers and flippers, who now need more margin to make projects pencil.

As a result, buyers are more conservative, and sellers are finally adjusting—though reluctantly. The days of 2022 pricing expectations are fading, especially in Class B and C product. Some owners are choosing to hold, refinance, or lease at reduced terms instead of selling at a “loss.”

Are sellers “willing to accept less”? Not always—but motivated ones are learning they must. Especially when cap rates are creeping up and buyers want contingencies or credits.

Capital Has Gone Cautious—Not Disappeared

A number of brokers and investors have noticed that investment capital has largely gone quiet, particularly in the past 30 to 60 days. Syndicates, funds, and even individual cash buyers are pressing pause, citing:

• Global economic uncertainty

• Tariff fallout

• Inflation pressure

• Tax policy unknowns

But let’s be clear: the capital is still there—it’s just more selective. Underwriting is tighter. Margins must be clearer. Risk premiums are real. If your deal doesn’t check every box, it doesn’t move.