Los Angeles Commercial Real Estate Market Trends===
Los Angeles, the second most populous city in the United States, is home to a thriving commercial real estate market. In recent years, this market has been characterized by a number of notable trends, including rising demand for office and retail space, a surge in the construction of mixed-use developments, and an influx of international investors. In this article, we will take a closer look at the state of LA’s commercial real estate market, both in terms of its recent history and current trends.
Los Angeles Commercial Real Estate Market: A Year in Review
The commercial real estate market in Los Angeles has experienced rapid growth in recent years, driven in large part by an influx of tech companies and related businesses. In 2018, the demand for office space in LA hit a record high, with leasing activity reaching 10.2 million square feet. The industrial and retail sectors also saw strong growth, with industrial space vacancy rates dropping to 1.5%, the lowest level in over a decade. Additionally, the region saw a rise in mixed-use developments, with several new projects breaking ground throughout the year.
Analyzing the Current Trends in LA’s Commercial Real Estate Market
Looking ahead to 2019 and beyond, the commercial real estate market in Los Angeles is expected to remain strong. One of the key trends expected to continue is the rise of mixed-use developments, which combine residential, commercial, and retail spaces in a single project. These types of developments are becoming increasingly popular as younger generations seek out walkable urban centers with easy access to amenities and public transportation. In addition, the demand for office space is likely to remain high, particularly in desirable locations like downtown LA and the Westside.
Another trend to keep an eye on is the continued influx of foreign investment in LA’s commercial real estate market. According to a recent report from CBRE, LA was the second most popular destination for foreign investors in 2018, trailing only New York City. Chinese investors, in particular, have been active in the LA market, accounting for over 80% of all foreign investment in the region. This trend is expected to continue, as foreign investors seek out stable, high-yield investments amid global economic uncertainty.
As we can see, the commercial real estate market in Los Angeles is currently in a strong position, with a number of trends driving growth and investment. From the rise of mixed-use developments to the continued demand for office and retail space, there are plenty of opportunities for investors and developers in this dynamic market. As always, however, it is important to stay up-to-date on the latest trends and market conditions in order to make smart, informed decisions.