DTLA Dethrones Class-A Office

LOS ANGELES—In Downtown Los Angeles, class-A office product isn’t the most expensive anymore, according to George Crawford, an associate at Charles Dunn Co., who says that class-B and class-C product is emerging as the most expensive and the most sought-after assets in Downtown Los Angeles. As a result, there is some pricing confusion in the market. Class-A is typically the standard by which other office classes set pricing. Now, Crawford says that determining values from class-A to class-C can be a challenge, and there are many buildings that are being reclassified thanks to adaptive reuse conversions and value-add plays, which is driven largely by creative office. To find out more about this emerging trend, how Crawford and other professionals determine value and how developers fit into the equation, we sat down with Crawford for an exclusive interview. Here is what he tells us:

GlobeSt.com: Can you provide an overview of the amount of buildings that have been reclassified in Downtown Los Angeles over the past two years?