From Fortune:



The Aon Center, the third-tallest tower in Los Angeles, has been sold for $147.8 million, which is 45% less than its previous purchase price in 2014. The sale is the largest office deal in downtown Los Angeles this year, indicating that office values are suffering due to high vacancies and financing costs. The office market in downtown Los Angeles has been severely affected since the pandemic, with almost 30% of the office space available for lease or sublease in the third quarter. The tough commutes and high homeless population have discouraged tenants and investors, leading to lower rents. As a result, office prices nationwide have fallen around 35% from their peak in the first quarter of 2022. The Aon Center was sold to a group consisting of Carolwood LP, a Los Angeles-based investment firm, for approximately $134 a square foot. The sale is indicative of the challenges faced by the downtown Los Angeles office market, including high vacancies and declining values.



Original: Remote work hits LA office space, Aon Center sale shows