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This year, investors will precede with cautious optimism. With strong market fundamentals, fear of a recession has subsided, but as pricing continues to climb to new peak levels, there is reason to be concerned. Industrial and multifamily land prices are hitting new records, and construction costs have continued to increase, making new construction a higher risk than before.

“I am cautiously optimistic. We are seeing record land prices at $60 per square foot for infill land in Los Angeles and Orange County and $25 per square foot in the Inland Empire,” Tom Kenny, EVP at Bellwether Enterprise, tells GlobeSt.com. “Those numbers are peaks, and any time you hit those, you have to start being a little bit cautious. However, investors think rents are going to continue to rise and that you can justify a new build at high costs.”

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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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