Los Angeles 2026 U.S. Real Estate Market Outlook Midyear Review

Executive Summary

As Los Angeles moves into the latter half of 2026, the commercial real estate landscape is set for continued transformation.

• Office flight-to-quality upgrades are driving increased leasing volume
• Industrial aerospace and defense industry occupiers, led by advanced manufacturers, are dominating demand for industrial space
• Multifamily owners are benefiting from modest rent growth, stable occupancy rates and little new construction
• Retail service, experiential and healthcare providers are driving demand