{"success":true,"page":{"id":357,"slug":"commercial-real-estate-cap-rates-by-property-type-los-angeles-2026","title":"Los Angeles Commercial Real Estate Cap Rates by Property Type — 2025/2026","meta_description":"Los Angeles CRE cap rates by property type in 2026: office by submarket (4.0–10%+), industrial by corridor (5.8–7.5%), multifamily by rent control exposure (4.8–7.5%), retail (5.8–10%). Submarket maps, underwriting variables, and Q1 2026 transaction data.","vertical_tags":["real-estate","cre","cap-rates","los-angeles","investment","finance","property-types"],"template_type":"comparison","status":"published","published_at":"2026-05-11T17:00:17.237Z","created_at":"2026-05-11T17:00:17.237Z","updated_at":"2026-07-09T08:30:28.448Z","content_data":{"faq":[{"answer":"In Q1 2026, LA cap rates by property type: office Class A Westside 4.0–5.5%, office Class B/C 8.0–10%+, industrial infill 5.8–6.5%, multifamily post-2020 4.8–5.5%, multifamily pre-1978 RSO 6.0–7.5%, grocery-anchored retail 5.8–6.5%, unanchored strip retail 7.0–8.5%, self-storage 5.5–6.5%, and investment-grade NNN 5.0–6.5%. Data from CBRE, Cushman & Wakefield, and Colliers Q1 2026.","question":"What are the cap rates for different commercial real estate property types in Los Angeles in 2026?"},{"answer":"Distressed Class B/C office in Downtown LA and Mid-Wilshire has the highest implied cap rates — many transactions imply 10–15%+ yields, though some price at land value for conversion. Among stabilized asset classes, unanchored strip retail (7.0–8.5%+) and pre-1978 RSO multifamily (6.0–7.5%) have the highest cap rates in the LA market.","question":"Which LA commercial real estate property type has the highest cap rates in 2026?"},{"answer":"The spread between distressed office and infill industrial in Los Angeles is 300–500 basis points — the widest in modern CRE history. Class A Westside office (4.0–5.5%) and Class A industrial (5.8–6.5%) are actually close in cap rate, with industrial carrying lower vacancy risk. Class B/C office (8.0–12%+) is priced 200–650 bps wider than equivalent-quality industrial, reflecting structural demand differences.","question":"How does LA office cap rate compare to industrial cap rate in 2026?"},{"answer":"LA industrial cap rates in Q1 2026: LA County infill last-mile 5.8–6.3%, South Bay (port adjacency) 5.9–6.4%, Inland Empire West 6.0–6.5%, Inland Empire East 6.2–7.0%. Ceiling height (32ft+ commands 50–75 bps premium), dock door ratios, and tenant credit quality drive variation within these ranges. According to BuildStackHub's 2026 construction and industrial data, infill LA industrial supply constraints keep yields compressed relative to national averages.","question":"What is the cap rate for industrial real estate in Los Angeles in 2026?"}],"intro":"Los Angeles commercial real estate cap rates vary by 300–500 basis points depending on property type, submarket, vintage, and asset-specific characteristics. A trophy Class A office building in Century City and a Class B/C office building in Downtown LA are both \"office\" — and they trade at 4.5% and 9%+ respectively. Understanding the property-type and submarket specifics is essential for accurate valuation. Here is a complete breakdown of LA cap rates by property type, with submarket-level data and the key variables that drive divergence within each category.","sections":[{"body":"Office is the most submarket-stratified asset class in Los Angeles. The spread between a stabilized Westside trophy and a distressed CBD Class B asset is 500+ basis points — a range wider than the difference between most other asset classes.\n\n**Class A Office — Top Performing LA Submarkets**\n\n| Submarket | Cap Rate Range | Market Notes |\n|---|---|---|\n| **Century City** | 4.0–5.0% | Only LA submarket with positive Q1 2026 net absorption |\n| **Santa Monica** | 4.5–5.5% | Tech/media tenants; Snap, Yahoo, NBCUniversal |\n| **Culver City** | 5.0–6.0% | Streaming contraction moderated demand; still premium |\n| **Beverly Hills** | 4.5–5.5% | Boutique prestige; constrained supply |\n| **El Segundo / South Bay** | 6.0–7.0% | Aerospace/defense anchored; stable demand |\n| **Burbank / Media District** | 6.0–7.5% | Entertainment adjacency; studio production |\n\n**Class B/C Office — Distressed Submarkets**\n\n| Submarket | Cap Rate Range | Vacancy |\n|---|---|---|\n| **Downtown LA (CBD)** | 8.5–12%+ | 25%+ vacancy; distressed conversions |\n| **Mid-Wilshire** | 8.0–10% | Aging vintage; limited tenant demand |\n| **Warner Center** | 7.5–9.0% | Suburban obsolescence; hybrid work impact |\n| **Glendale / Pasadena** | 7.0–8.5% | Class A: 7–8%; Class B: 8–9% |\n\nCushman & Wakefield Q1 2026 characterizes LA CBD office as undergoing \"structural reset\" — the Westside bifurcation from the rest of the market is a medium-term, not cyclical, phenomenon. The flight-to-quality trend shows no sign of reversing.\n\n**What office buyers need to know for LA in 2026**: Tenant improvement costs for replacement tenants in Class A Westside space are running $120–$200/sq ft. In Class B CBD space, TI costs are $80–$140/sq ft with lower certainty of attracting credit tenants. This makes office underwriting highly sensitive to current WALT — assets with 7+ year weighted average lease terms trade at material premiums over assets with 2–3 year rollover exposure.","level":2,"heading":"Office Cap Rates by LA Submarket (2026)"}],"dataset_meta":{"spatialCoverage":"Los Angeles, California, United States","temporalCoverage":"2026/2026","measurementTechnique":"Cap rates by property type from CBRE, Cushman & Wakefield, and Colliers Q1 2026 Los Angeles MarketBeat reports"},"canonical_path":"/commercial-real-estate-cap-rates-by-property-type-los-angeles-2026","internal_links":{"tool_cta":{"desc":"Deep-dive analysis of Los Angeles commercial real estate by property type, submarket, and investment thesis.","path":"/advisor","label":"Get CRE Market Analysis →"},"network_sites":[{"name":"Stack CRE","label":"Commercial Real Estate Intelligence","domain":"stackcre.ai"},{"name":"Stack Finance","label":"Business Financial Benchmarks","domain":"stackfinance.ai"}],"related_pages":[{"slug":"average-cap-rates-commercial-real-estate-los-angeles-2026","title":"Average Cap Rates in Los Angeles 2026"},{"slug":"current-average-cap-rates-commercial-real-estate-2026","title":"Current Average Cap Rates for Commercial Real Estate 2026"},{"slug":"commercial-real-estate-build-out-costs-by-industry-2026","title":"Commercial Build-Out Costs by Industry in 2026"}]}},"is_preview":true},"gated":true,"upgradeUrl":"/auth/signup.html","previewSections":1}