Following the $13.5 million sale of a Downtown LA mixed-use retail and office property, many leaders in the commercial real estate industry feel that the Los Angeles marketplace is poised for an increased wave of auctions through the remainder of 2024 and 2025. The reason may be the market’s distress, rising interest rates, and high vacancy levels.

Victor Gutierrez, Ten-X’s Vice President and head of platform operations, spoke with Los Angeles Business Journal about the recent trends he’s witnessed on the Ten-X auction platform along with his predictions for the coming year.

“Our volume is up 20% (nationwide) quarter to quarter,” said Gutierrez. “I don’t necessarily think that’s tied specifically to us as a company, or the auction format. I think it’s really tied to the broader commercial real estate market. Last year, the market was frozen. Transaction volume was down 55% as a whole. I think what we are seeing is the market thaw.” He continued to note that the past decade has seen a move away from the traditional stigma against online auctions for commercial real estate transactions as the industry as a whole has grown increasingly digitized. “I do think that more and more owners and brokers are open to selling their properties via auction format.”

Read the full article on Los Angeles Business Journal.