LA Property Values Down 20% to 30%. Japanese Investors Still Buying. What I Learned at JLL's Event.
Great evening with Luc Whithold and the JLL team at the Santa Monica Proper Hotel.
Beautiful rooftop, great people, and some great conversations with investors, brokers, property owners, and operators.
Here are five things I took away.
1. Japanese investors are buying LA.
I spoke with representatives of a major Japanese investment firm actively investing in U.S. real estate. Los Angeles is one of their target markets.
Despite the negative headlines, international capital still sees opportunity here.
2. Many owners are feeling the pain.
One recurring theme was property values being 20% to 30% below what investors originally paid.
Higher interest rates, refinancing pressure, and local policies are creating real challenges.
3. Some owners want to sell quietly.
I heard that certain owners are open to selling but prefer private conversations rather than publicly listing their properties.
For buyers with cash and strong relationships, this could create opportunities.
4. Retail investors had a different outlook.
Some of the more positive conversations came from retail specialists.
They understand their markets, know which tenants work, and have strong broker relationships.
It reminded me how important it is to really know your asset class.
5. Most investors aren't calling a bottom yet.
The general mood was cautious.
Interest rates, property values, and local policies remain major concerns. I didn't hear much confidence about when the market would turn.
What I Learned
The biggest contrast of the evening?
Some existing owners are sitting on the sideline, while new international and deep pocked private capital is still looking to buy in Los Angeles.
My takeaway is that the next few years could create some excellent buying opportunities for investors with cash, patience, and a deep understanding of the asset and the market. You must be a great operator in this investment now.
I don't know if we've reached the bottom. And from my conversations, neither do many other investors. No one can call a bottom. I do see it as a good time though for money to move out of Ai where values are very high and into real estate where values have reset and create opportunities.
Thanks again to Luc and the JLL team for a great event.