The biggest risk in LA multifamily today isn’t interest rates, rent control, or new supply. It’s habitability claims. The tough part is this: There doesn’t even need to be a real habitability issue to get pulled into a sizable lawsuit. We’re seeing more tenant attorneys actively targeting buildings, finding small issues, and turning them into leverage. Most owners don’t realize how exposed they are until they’re already dealing with it. This is no longer just a legal issue. I

100% of the time I only sell Los Angeles apartment buildings.I don’t try to cover other product types and I don’t try to cover other markets outside of Los Angeles. In LA where every deal is hyper local and constantly shifting, being fully focused matters. I get calls all the time to sell office, retail, or assets outside of Los Angeles and I say no. Not because I can’t do it, but because my clients are better served when I stay focused on what I actually specialize in.Being

After 16+ years selling multifamily in LA, this is one of the biggest shifts I’ve seen in this current market: Sales comps are becoming less relevant. In a market with elevated inventory especially for RSO deals pricing off a comp from 3–6 months ago is often inaccurate. That market no longer exists. Buyers aren’t underwriting to past sales. They’re underwriting to today’s competition. “What else can I buy right now?” is the only question that matters. The new comp is active

A new construction multifamily investor came into my office this week to hear our marketing pitch on the value of one of his Hollywood buildings. After I shared the valuation, he pulled up ChatGPT and said: “Chat told me cap rates are between 4–5%, not 6% for new product.” What I took from that: Chat and any AI model is only as good as the data you give it. With no real inputs, it can actually hurt valuations and underwriting. Especially in a market like LA where everything i

I recently launched two new construction multifamily listings in Los Angeles. Before going to market, I called the Housing Department to confirm both were Non-RSO. Turns out one of the listings (1271 W 39th Pl) was rent controlled and the other (2000 N Beachwood Dr) was non-rent controlled. This is something many developers and investors misunderstand. In Los Angeles, new construction does not automatically mean rent control exempt. If a project replaces older rent-controlled

Los Angeles continues to operate in a perpetual “state of emergency.” Last week, the L.A. County Board of Supervisors voted to extend countywide emergency price restrictions through March 29, 2026 — tied to wildfires that occurred 14 months ago. Under these restrictions, landlords cannot raise rent more than 10% above the rent in effect immediately prior to the declared emergency, even: • On vacant units • On new leases • On units that may otherwise qualify for larger increas

The Los Angeles multifamily housing market is still struggling to achieve substantial rent growth momentum. Annual rents saw a minimal rise of just 0.1% in 2025, marking the third consecutive year with less than 1% growth. This increase was even lower than in previous years, which recorded rent growth rates of 0.5% in 2023 and 0.9% in 2024. The most recent decline in rental rates of -0.3% occurred in 2020, when residents were under lockdown from the COVID-19 pandemic — follow

Near Los Angeles International Airport, Six Peak Capital has begun construction on a 116-unit affordable housing project—a notable shift for a developer once focused on market-rate co-living spaces. In South Los Angeles, SoLa Impact recently opened a 79-unit affordable complex at just under $275,000 per unit, far below the city’s typical $1 million cost per unit. Meanwhile, in the San Fernando Valley, developer Passo is set to open its first affordable project ahead of schedu

Immediate impact on CRE limited. While the shutdown of the federal government carries implications for the economy at large, in the...

The U.S. Federal Reserve cut its benchmark interest rate by a quarter-percentage point on Wednesday, the first reduction in nine months....

For the past eight consecutive quarters ending in the second quarter of 2025, rent growth in Los Angeles has registered modest gains,...

Six months after wildfires destroyed thousands of buildings across Los Angeles, state housing officials are releasing $101 million to...

Tariffs shake up securities: The disruption from the Trump administration’s on-again, off-again tariffs prompted bond ratings firm KBRA...

Labor Market Nears 2024’s End in Solid Position, Aiding Commercial Real Estate

Fed takes second step on gradual rate-lowering path. After reducing the overnight lending rate by 50 basis points in September, the...

Discrepancies cloud employment data. October’s atypically low job creation total of 12,000 is largely the result of sector hiring...

Lower-cost submarkets on solid footing. Amid a period of household budget tightening, local apartment fundamentals point to strong...

Labor market flexes renewed strength. Following three straight monthly gains below 160,000 new jobs, national employment rose by 254,000...

Decision kicks off greater reduction cycle. The Federal Open Market Committee (FOMC) slashed the federal funds rate by 50 basis points...

Supply and demand realignment provides stability. The net absorption of nearly 260,000 apartments across the opening two quarters of...