LOS ANGELES—“After lagging behind for a few years, Los Angeles commercial real estate is finally catching up with the Bay area,” according to a video report produced by Allen Matkins and UCLA Anderson. In the video report, which GlobeSt.com has exclusively, industry experts discuss the Los Angeles market across the office, industrial and multifamily sectors, and agree that the three-year outlook is strong.
The information in the video is commentary about a recent survey conducted by UCLA Anderson and Allen Matkins that showed Southern California new construction would remain strong through 2017. In Los Angeles, this new construction is concentrated in Downtown L.A, according to the video, as well as Hollywood, according to a recent interview with John Tipton, Allen Matkins attorney.
According to experts, L.A. has replaced the industries it lost during the recession, like oil, national banks and aerospace industries, with new professional industries, namely entertainment and technology. These industries are helping to fuel demand in the office sector, which had not been built out before the 2008 and 2009 recession hit.
This job growth has also helped to fuel the demand for new housing in the Los Angeles market and has put upward pressure on rental rates, which inevitably has led developers to launch new multifamily projects to fill supply. “People come here for the opportunities. It is a very open city that welcomes new comers, and so the combination of those will always make it a very attractive place to put down your stake and take your shot,” says Tipton.
Outside of Los Angeles, the Inland Empire is also booming. Expert Barbara Emmons, CBRE vice Chairman explains that the demand there is driven “by the fact that there is available land, and you can build big buildings there.”