The regional total represents approximately 7% of the total value of distressed US commercial properties. Nonetheless, the area ranked only 24th among US markets in terms of the percentage of properties under distress. "Overall, L.A. is not one of the main areas in the country for distressed properties on a percentage basis," observes Dan Fasulo, director of research for Real Capital. "While some of the secondary and tertiary markets have suffered, prime markets in L.A. are still extremely attractive."

The region's troubled asset tally includes 267 properties. While the retail sector accounts for the largest number of properties with 78 assets compared to 58 office assets, 51 industrial assets and 40 apartment assets, on a dollar basis, office is number one at $1.84 billion, followed by retail at $1.81 billion, apartment at $511 million and industrial at $397 million.

Though the published report doesn't break down the general property categories by subcategory, Fasulo tells GlobeSt.com that one of the notable trends is how well the technology sector has performed. "We haven't seen the same type of pullback from that group as we did in '01 and '02, when high-tech companies were giving back space hand over foot," he says. "It's been more the financial firms and mortgage brokers that have been hit."