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wo prominent office towers tied to Brookfield in Downtown Los Angeles have seen their values plummet. New appraisals of the skyscrapers, 725 South Figueroa Street and 333 South Hope Street, have cut their value by two-thirds, according to Morningstar. The reduced valuations are a reflection of the city's office market collapse following the shift to remote work.

    EY Plaza, a 41-story, 943,000-square-foot building on Figueroa, was appraised at $150 million or $159 per square foot, down from its previous value of $446 million or $473 per square foot four years ago. The property has been handed over to lenders and is currently in the process of being sold.

    Bank of America Plaza, a 55-story, 1.4 million-square-foot building on Hope Street, was appraised at $189 million or $135 per square foot, down from its previous value of $605 million or $432 per square foot ten years ago. Brookfield still owns the property and has indicated that it plans to hold onto it.

    The new valuations are in line with recent office sales in Downtown Los Angeles. In December, Carolwood paid nearly $148 million for the Aon Center at 707 Wilshire Boulevard, working out to $134 per square foot. The County of Los Angeles also finalized the purchase of The Gas Company Tower at 555 West Fifth Street for $200 million, or $148 per square foot.

    The office vacancy in Downtown L.A. was 32.8 percent last quarter, with nearly 1.2 million square feet of negative net absorption, according to CBRE. This is a significant increase from the previous year's vacancy rate of 28.2 percent and annual net absorption of 1.5 million square feet.