Los AngelesInvestment volumes trended down again this year, but it isn’t due to a lack of investor demand. In fact, investor demand is stronger than ever, but with limited opportunities, it is a difficult market for buyers—particularly in Southern California. According to the 2020 Real Estate Outlook Report from CBRE, next year should be similar in terms of investment activity.

“Investment volumes were down through 2019 in Los Angeles and Southern California, and that doesn’t have anything to do with appetite for investment,” Mike Longo, SVP at CBRE, tells GlobeSt.com. “There is more private equity buying power than there have ever been—we are up to $240 billion from the private equity markets—and that is just one small segment of the buying field. Low investment volumes don’t really have anything to do with the health of the market in Southern California.”

The low sales volumes are directly connected to the availability of product, but many owners are not willing to part with their properties. “It is really more of an indication of the product that is available,” says Longo. “It is hard to be a buyer in today’s market. When you see more volatility in the market, you see more transaction volume because investors are looking to monetize before any type of blips in the cycle. That is the main indicator of why we haven’t seen investors more willing to sell.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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