What an Operator Sees
The Port closed $36 million — $159.66 a foot — on a 225,486-square-foot downtown Long Beach Class A tower that was 36.4% vacant, with roughly 92,000 square feet still for lease. Submarket average sits nearer $218 a foot. Faring had held it about ten years.
Private office capital is running from vacancy like this. A government user just bought it anyway.
That is the missed implication for LA County office owners: when the only credible bid on a half-empty tower is a public user, the floor is no longer set by investor yield math. Nearby landlords should ask whether their next exit is another landlord — or an agency that does not need a cap rate.
I research these transactions to sharpen my own investment strategy and share what I find so Los Angeles owners, brokers and investors can debate the market with better information.
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Property and transaction data: CoStar Research.