Los Angeles skylineThe Dot Com Bubble and 2008 Financial Crisis could provide a roadmap to the recovery and the current market dislocation brought on by the coronavirus pandemic.

According to research from JLL, the Los Angeles office market outperformed Orange County and the national market in the last two recessions. Los Angeles’ office market had an average 11% peak-to-trough decline between the last two recessions, while Orange County had a 22.3% peak-to-trough decline. By comparison, the US office market declined 13% peak-to-trough. Los Angeles also recovered faster, reaching pre-recession rents in 5.3 years, while Orange County took 7.5 years to reach peak rents again. This data could prove useful in predicting office activity patterns during a downturn.

“What caused this recession is unprecedented, but once we slide into the mechanics of a recession, which we really won’t feel until you see formulated layoffs, there will be similarities to prior recessions,” Peter Belisle, market director for the Southwest region at JLL, tells GlobeSt.com. “For Southern California, the good news is there is stronger economic diversification than we had in both the previous recessions.”

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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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