SoCal Construction Activity Could Rebound Sooner Than Expected

Construction activity has slowed in Southern California since the onset of the pandemic—but it could be set to rebound earlier than expected. Commercial construction starts in Los Angeles and San Diego are expected to increase next year. Orange County, on the other hand, could be impacted by outcome of the presidential election in November; however, specific asset classes are set to rebound faster than others.

In Los Angeles, even hospitality is already showing signs of recovery. Retail is the only sector expected to struggle to recovery. “We expect that Los Angeles commercial office projects are going to be rolled out aggressively as soon as the general economic outlook improves,” Anu Rao, VP at JLL in Los Angeles, tells GlobeSt.com. “We see some activity around Los Angeles hospitality projects being renewed sooner than we expected, but retail is one of the last sectors expected to pick back up. Overall, the first quarter is going to be slower in Los Angeles construction as projects will be in design and permitting.”