The recent Palisades and Eaton wildfires have inflicted significant damage on commercial real estate in Los Angeles, with multifamily and retail properties bearing the brunt of the destruction. According to a report from CAL FIRE and CoStar, the fires have caused $1.9 billion in damage to 4.5 million square feet (MSF) of commercial properties. An additional 23.6 MSF, valued at $7.8 billion, sits within nearby evacuation zones, indicating potential for wider economic impact.
In the Pacific Palisades, a high-value area with a mix of upscale residential and retail properties, the fires led to substantial losses. Over 30 luxury apartment buildings were damaged, mainly located near Sunset Boulevard and Pacific Coast Highway. More than 600,000 square feet (KSF) of high-end retail space, including boutiques and mixed-use developments, also suffered severe damage. Among the notable losses was the historic Business Block, a Spanish Colonial Revival property owned by Anderson Real Estate.
In Altadena, the Eaton Fire caused damage to smaller properties, particularly along Lake and Fair Oaks Avenues. Twelve apartment buildings, many of which were older and lacked modern amenities, were impacted. Additionally, over 270 KSF of retail space was affected, including essential businesses like discount grocery stores and pharmacies.
The fires’ timing is especially problematic for Los Angeles, which is already facing a housing shortage. The destruction of multifamily units further exacerbates the region’s housing crisis. Additionally, Accuweather has projected that the total cost of the fires could reach $250 billion, potentially making them the costliest natural disaster in U.S. history.
References:
- CAL FIRE
- CoStar Group
- Accuweather
Picture from Freepik
