"At our height we were the second largest landlord behind Brookfield in downtown L.A., and we're still around they're not, Rising said, alluding to his efforts to hold on to One California Plaza as opposed to the hundreds of millions of dollars worth of downtown office towers Brookfield has defaulted upon in an exit being made mostly via lenders or receivers."
"Brookfield has multiple offerings throughout downtown's Financial District that account for about a fifth of Class A office space. That elicited some laughs, but Rising then commanded attention with a serious assessment of current events. The son of the late Nelson Rising, who was very involved in California politics, said there is a broken trust with Wall Street, and it stems from Measure ULA."
Commercial real estate executives in Southern California expect another difficult year with limited institutional investment and no immediate rescuer for downtown offices. Family-owned firms report heightened caution as institutional capital remains in a wait-and-see posture. Brookfield's large downtown holdings and recent defaults have amplified pressure on Class A office inventory and transaction activity. Measure ULA's property-transfer tax has eroded trust with Wall Street by increasing deal costs and political risk for sizable transactions. Some owners are choosing to hold core assets rather than exit through lender- or receiver-led processes. Market participants anticipate continued transaction hesitation and ongoing reform debates.
#commercial-real-estate #measure-ula-property-transfer-tax #downtown-los-angeles-office-market #institutional-capital
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