Commercial deals paid 56% of Measure ULA revenue

What's happening

Los Angeles's Measure ULA transfer tax, in effect since April 2023, has generated about $1.1 billion across nearly 1,600 transactions, according to a Real Deal analysis published in April 2026. Commercial property, including office, retail, industrial, multifamily and mixed-use, accounted for 55.5% of that revenue, or $635.2 million.

On July 1, 2026, the LA City Council voted unanimously to drop a proposed ballot measure that would have exempted new multifamily construction from ULA. As a result, no ULA reform will go before voters in November. The measure applies to property sales within the City of Los Angeles above set price thresholds, and it has been criticized by commercial owners and developers who say it has reduced transaction activity. Hollywood and Playa Vista were the top commercial neighborhoods by ULA revenue, at $71.2 million and $59.9 million.

• Total revenue: About $1.1 billion from nearly 1,600 deals
• Commercial share: $635.2 million, 55.5% of the total
• Single-family share: $472.6 million, 41.3%
• Top commercial areas: Hollywood ($71.2M) and Playa Vista ($59.9M)
• Policy: Council removed the reform measure on July 1, 2026

What it means for owners, tenants and investors

For sellers of larger assets in the City of Los Angeles, ULA remains a fixed cost of exit, and pricing should account for it from the start. Properties just outside city limits, in cities such as Vernon, Commerce, Carson or unincorporated county areas, are not subject to ULA, which affects comparisons and buyer demand.

Owners with longer hold horizons should model the tax at exit and consider whether a sale, recapitalization or long-term hold best serves their position. Because ULA is a tax on the gross sale price, it can materially reduce net proceeds on large transactions. Brokers and sellers should confirm the exact threshold and rate with the City of Los Angeles Office of Finance before marketing a property, and buyers should understand how the tax affects a seller's pricing expectations and willingness to transact.

With reform off the ballot, ULA should be treated as a permanent feature of City of LA transaction math.

What to watch

Any renewed state-level or city proposals for 2027, and whether commercial transaction volume within city limits continues to lag neighboring jurisdictions. The city's Office of Finance publishes ULA guidance and thresholds, which are adjusted annually.

Photo: Jimmy Hu / Unsplash.