2016 was a peak year for the Los Angeles County office sales market, according to a joint analysis conducted by CommercialCafé and Yardi Matrix .
The report analyzed office transactions of more than $5 million for office buildings of over 50,000 square feet, from 2012 to 2016. The results show that 2016 was the most active year of the past decade in terms of office sales.
A total of 88 office deals closed in L.A. County in 2016 for $9.6 billion, bouncing back strong from 2015 and marking a 10-year record in terms of sales volume.
The largest deal of the year closed in March, when a partnership between Santa Monica-based Douglas Emmettand the Qatar Investment Authority paid $1.34 billion for a four-building office portfolio in Los Angeles' Westwood submarket.
The average price per square foot for office assets sold in the county also broke records in 2016, reaching $430—the highest level in five years and more than twice the average price recorded in 2012 or 2014. The office building at 2700 Colorado Ave. fetched the highest per-square-foot price of the year ($1,165) and established a new record for Santa Monica's office market, which is poised to gain momentum in the upcoming years.
Two key transactions stood out from the crowd in 2016. The joint venture between Douglas Emmett and QIA was the biggest buyer of the year, while the Blackstone Group was the most active entity overall, closing one purchase and divesting a total of 10 properties.
Download the full report here.