The Pulse on L.A.’s Commercial Real Estate Market – What the Latest Trends Show

In the Los Angeles metro area, the real estate market is thriving and showing no signs of stopping, according to the Winter/Spring 2018 Allen Matkins/UCLA Anderson Forecast survey for Commercial Real Estate.

Although the survey does point to a decline in the retail sector, this is offset by the spike in demand for e-commerce services. The market is further helped along by recent tax overhauls, ongoing job growth and a thriving gross domestic product.

A Hungry Office Market in Silicon Beach 

From Hulu to Youtube, Google to Snapchat, today’s top tech companies are looking at an ocean view, and there’s none better than Silicon Beach. Close to 500 startups, incubators and accelerators alone call cities like Playa Vista, Santa Monica, Venice and Culver City home, and it’s easy to see why. Vacancies for commercial office space continue to decrease amidst hungry demand and increasing prices, making now a great time to capitalize on the huge surge in jobs among tech, streaming and gaming companies. 

Industrial and Warehouse Spaces Needed for E-Commerce Businesses 

New e-commerce companies are putting increased demand on distribution and warehouse space, and the real estate survey showed steady growth across Los Angeles county in the coming years for this particular sector.

Imports from Asia along with e-commerce businesses have caused a marked increase in demand, with new projects cropping up consistently.

Multi-Family Rental Demand Increases 

While Home ownership Falls While there’s a significant increase in job growth in L.A. and Orange counties, home ownership nevertheless remains out of reach for many residents, fueling the demand for multi-family and other rental properties. Many of the panelists surveyed indicated that they had plans to develop multi-family rental properties in the aforementioned counties, making now the time for investors to act and get their share of this lucrative market.

The Allen Matkins/UCLA Anderson Commercial Real Estate Forecast Survey attempts to predict real estate trends in and around Los Angeles and southern California for the next three years. By all estimates, the commercial real estate market is growing and job growth in various sectors, coupled with increased demand shows a bright future for both beginning and expert California hard money lenders.

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