Sherman Oaks Multifamily Real Estate Market Overview
Sherman Oaks, a highly sought-after neighborhood in the southern San Fernando Valley, offers a convenient and upscale suburban lifestyle. It is roughly bounded by Ventura Boulevard to the north, Mulholland Drive and the Santa Monica Mountains to the south, the I-405 Freeway to the west, and Woodman Avenue / Laurel Canyon Boulevard to the east, with Ventura Boulevard serving as the vibrant main commercial corridor. It borders Studio City and North Hollywood to the east, Encino to the west, Van Nuys to the north, and Beverly Glen and Bel Air over the hills to the south. The area boasts plenty of things to do, including upscale dining and shopping along Ventura Boulevard, enjoying the scenic Fryman Canyon Trail and Wilacre Park hikes with stunning city views, visiting local parks, and taking advantage of its close proximity to Universal Studios Hollywood, the Hollywood Bowl, and Studio City’s entertainment scene.
In the Sherman Oaks apartment market, multifamily properties remain popular among investors due to strong rental demand, excellent freeway access, and a desirable mix of walkability and residential charm. This makes Sherman Oaks an attractive option for apartment building owners and investors seeking reliable cash flow and long-term value in one of the San Fernando Valley’s most balanced and desirable neighborhoods.
2025 Sherman Oaks Multifamily Market Statistics at a Glance
Sherman Oaks Annual Multifamily Apartment Building Sales Statistics*
Buildings Sold: 36
Avg. Sale Price: $7,071,458
Avg. Price/Unit: $299,497
Avg. Months to Sale: 5.2 mos
Avg. Price/SF: $363
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Sherman Oaks Multifamily Market Overview 2026
Sherman Oaks is a highly desirable San Fernando Valley neighborhood within the City of Los Angeles known for strong renter demand, upscale demographics, proximity to Ventura Boulevard and the 405/101 freeways, and a premium profile relative to many other Valley submarkets. Cap rates in the area typically range from approximately 4.5% to 5.5% (with newer or higher-quality assets often trading toward the lower end), reflecting its elevated positioning within the Valley. Price per unit commonly falls in the $275,000 to $400,000+ range, depending on building quality, unit mix, condition, vintage, and exact location.
The typical apartment building is a smaller-to-midsize 4- to 30-unit property, often garden- or courtyard-style low-rise, with a substantial portion of the older inventory subject to the City of Los Angeles Rent Stabilization Ordinance (RSO). Buyer demand comes from high-net-worth individuals, 1031 exchange buyers, private investors, and long-term holders seeking stable assets in a high-demand Valley submarket with strong demographics and convenient Westside access.
Sherman Oaks Rent Control and Measure ULA
As part of the City of Los Angeles, Sherman Oaks properties are subject to the Los Angeles Rent Stabilization Ordinance (RSO / LARSO). Most multi-unit buildings with certificates of occupancy dated before October 1, 1978 are covered. The allowable RSO rent increase for the period July 1, 2026 through June 30, 2027 is 3% (under the updated formula of 90% of CPI with a 1% floor and 4% ceiling; utility and dependent adders have been eliminated).
Buildings not covered by the RSO may still fall under AB 1482 statewide protections (generally 5% + CPI, currently 8.7% for the Los Angeles area for increases effective August 1, 2026–July 31, 2027). Measure ULA does apply in Sherman Oaks. As a City of Los Angeles neighborhood, sales of qualifying properties (generally $5 million and above) are subject to the Measure ULA transfer tax surcharges (4% on $5M–$10M sales; 5.5% on $10M+).
How to Sell a Sherman Oaks Apartment Building
Sherman Oaks benefits from strong renter demand, desirable location appeal, and solid long-term fundamentals. However, RSO restrictions significantly impact cash flow growth and buyer underwriting for older buildings, and Measure ULA can affect net proceeds on higher-priced sales. Sellers of long-held properties must also navigate low tax basis, depreciation recapture, and potential 1031 exchange planning.
An experienced multifamily broker who understands Sherman Oaks’ position within the broader San Fernando Valley market, Los Angeles RSO rules, Measure ULA implications, and the local/1031 buyer pool can help you evaluate pricing and the optimal path to maximize your net proceeds.
Sherman Oaks Multifamily Market Statistics
Average Rent vs Vacancy Rate- Historical & Estimated
2025 Q3: Sherman Oaks, California Multifamily Average Rent: $2,465 Average Vacancy Rate: 5.8%Average GRM and Cap Rate- Historical
2025: Sherman Oaks, California multifamily apartments sold Average GRM: 11.6 Average Cap Rate 5.7%Number of Multifamily Buildings Sold- Historical
2025: Sherman Oaks, California Multifamily Buildings Sold: 36Average Price/Unit and Price/SF- Historical
2025: Sherman Oaks, California Multifamily Average Price/Unit Sold: $299,497 Price/SF Sold: $363Historical and estimated market statistics for the Sherman Oaks, California multifamily apartment building submarket. The graphs above show the average Price/Unit, Price/SF, GRM, Cap Rate, Average Asking Market Rent and Vacancy for Sherman Oaks multifamily apartment buildings for the years 2020-2025. *All data has been obtained from CoStar. Jake Plewa, the Taksa Investment Group and ReMax Commercial cannot guarantee the accuracy of the data above. The graphs and statistics are for information purposes only. Frequently Asked Questions: Sherman Oaks Apartment Buildings
What is the cap rate and price per unit in Sherman Oaks?
Cap rates in Sherman Oaks generally range from approximately 4.5% to 5.5%. Price per unit commonly falls between $275,000 and $400,000+, depending on building condition, unit mix, vintage (RSO vs. newer), location, and quality. Well-positioned assets near Ventura Boulevard or the hills often command premiums.
Is Sherman Oaks under rent control?
Yes. As part of the City of Los Angeles, most multi-unit buildings built before October 1, 1978 are covered by the Los Angeles Rent Stabilization Ordinance (RSO). The allowable increase for July 1, 2026–June 30, 2027 is 3%. Some buildings may instead fall under AB 1482.
Does Measure ULA apply to apartment sales in Sherman Oaks?
Yes. Measure ULA is a City of Los Angeles ordinance and applies to qualifying property sales in Sherman Oaks (and other LA City neighborhoods).
How do I sell an apartment building in Sherman Oaks?
Work with a broker who understands Sherman Oaks’ position in the San Fernando Valley, the Los Angeles RSO system, Measure ULA transfer tax implications, the local and 1031 buyer pool, and how to accurately present both in-place income and long-term upside. Precise pricing and clear communication of the regulatory framework are especially important in this market.
Disclaimer The information on this page is provided for general informational purposes only and does not constitute legal, financial, tax, or investment advice. Jake Plewa, the Taksa Investment Group, and RE/MAX Commercial make no representations or warranties regarding the accuracy, completeness, or reliability of any data, statistics, graphs, or market information presented. Market conditions change, and past performance is not indicative of future results. You should independently verify all information and conduct your own thorough due diligence, including consulting qualified professionals, before making any decisions related to the sale or purchase of an apartment building.
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