""We knew the best landlord we could possibly have would be ourselves," said Capital Group Chief Executive Mike Gitlin, emphasizing the strategic shift towards ownership among tenants."
""Everyone knows we're near the bottom of this cycle, and it's always good to buy near the bottom," stated Newmark property broker Kevin Shannon, highlighting the timing advantage for buyers."
Vacancy rates in downtown Los Angeles have surged, leading to a significant drop in office building values. Major tenants like Capital Group and Riot Games are seizing the opportunity to purchase properties rather than rent. Owner-users now represent nearly half of downtown office transactions, capitalizing on low prices resulting from the pandemic's impact on the market. The overall vacancy rate has increased from 14% in 2019 to 34%, with many businesses recognizing the potential benefits of ownership at this market low.
Read at Los Angeles Times
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