Study Reveals Economic and CRE Impacts of the 2025 Wildfires
The 2025 Palisades and Eaton fires caused major damage to properties and the economy.
A new study conducted by the Los Angeles County Economic Development Corporation (LAEDC) reveals the wildfires' extensive impact on property owners, businesses, and the economy.
What You Need to Know
Key findings from this study include:
Property damage: $28–$53.8 billion, impacting over 20,000 properties.
Business impact: 1,863 businesses affected, with $4.6–$8.9 billion in losses expected over five years.
Job impact: 24,990–49,110 job losses and $1.9–$3.7 billion in lost wages.
Tax losses: Governments may lose $0.73–$1.4 billion from reduced business activity.
Most affected industries: professional services, retail, health care, and construction.
Damage: Thousands of buildings, schools, churches, and utilities were destroyed, slowing recovery.
How It Impacts You
This study highlights key points for commercial real estate professionals on resilience planning, risk management, and long-term recovery strategies.
Property losses may result in higher insurance premiums and a review of risk assessments for properties in wildfire-prone areas.
With many businesses impacted, commercial landlords may face higher vacancy rates and longer lease renegotiations as tenants recover.
Delays in permits, labor shortages, and financial issues could lengthen rebuilding times, affecting property owners wanting to restore or sell.
Damage to utilities and infrastructure could disrupt property operations and tenant satisfaction, highlighting the need for disaster-resistant investments.
Businesses that relocate due to destruction may change demand in commercial real estate, affecting lease rates and property use.
Stay Connected
The report highlights the need for preparedness and advocacy to reduce future wildfire risks.
BOMA/GLA will keep tracking policy changes on BOMA on the Frontline, offer resources for property managers, and push for regulatory relief to help the CRE industry.
