Los Angeles Mayoral Race: CRE Industry Searches for a "Business-Minded" Leader to Make the City Investable Again

As the June 2026 mayoral primary nears, LA's commercial real estate industry seeks a candidate to reverse policy unpredictability and improve city quality of life.

By: AXL Media

Published: Mar 31, 2026, 8:41 AM EDT

Source: Bisnow

The "Investability" Crisis in Los Angeles

As the June mayoral primary approaches, the Los Angeles commercial real estate community is framing the election as a referendum on the city’s economic viability. While LA metro real estate sales volume reached $37.3 billion at the end of 2025, the market remains significantly depressed compared to the $51.4 billion peak reached in 2019. Concord CEO Reuben Robin emphasized that the primary concern for investors is not demand, but "policy execution," noting that regulatory shifts have made Los Angeles a difficult market to justify compared to neighboring municipalities.

Regulatory Hurdles: Measure ULA and Rent Caps

A central point of contention for the CRE industry is Measure ULA, often referred to as the "mansion tax," which imposes a 4% tax on property transfers over $5.3 million and 5.5% on deals exceeding $10.6 million. Critics argue these taxes, combined with strict caps on rental increases, have stifled the development of both market-rate and affordable housing. While demand for housing remains high, the cost and unpredictability of policy changes have led many local firms to divert capital to markets outside of California in search of more stable yields.

Evaluating Executive Outcomes: ED 1 and Housing Production

Industry professionals have voiced skepticism regarding the effectiveness of current initiatives like Mayor Karen Bass’ Executive Directive 1 (ED 1). Designed to streamline 100% affordable housing projects, ED 1 saw nearly 490 project proposals totaling 40,000 units by late 2025. However, reports indicate that only about 2,500 units (roughly 6% of the proposed total) have actually broken ground. Leaders like Parisa Roshan of Thomas Safran & Associates argue that the electorate should judge candidates on physical units built rather than units merely "permitted" or "approved."