Values Of 2 Downtown LA Office Towers Plummet

New appraisals of two notable Downtown Los Angeles towers illustrate just how far values have fallen for office in the area.

EY Plaza, valued at $446M four years ago, was appraised this month at $150M, a roughly 66% drop in value. The property at 725 S. Figueroa St. has a receiver in place, and court approval of a sale is pending, according to Morningstar, which reported the new appraised value.

Bank of America Plaza at 333 S. Hope St., which was valued at $605M 10 years ago, is now valued at $188.9M, a 69% drop in value.

Both properties have connections to Brookfield. The Brookfield entity that owned EY Plaza handed the keys over to lenders in 2023. Brookfield still owns Bank of America Plaza and suggested that it planned to hold on to the tower in July when the $400M loan on the property moved to special servicing.

Downtown offices have struggled to retain tenants, especially in the central business district. Tenants are often downsizing here or decamping altogether for places like Century City or more suburban office markets.

There are still tenants renewing and signing new leases, but they tend to be on the smaller side. Most recently, California Bank & Trust signed a lease at the Aon Tower for more than 20K SF for a new LA headquarters.

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