Southern California Commercial Real Estate: Vacancies Shrink In East Valley

Southern California Commercial Real Estate:
Vacancies Shrink In East Valley

Southern California commercial Real Estate - Brion Costa

Lack Of New Construction Bolsters Southern California Commercial Real Estate Occupancy Numbers

The "East Valley", or the "Inland Empire" as it's also known, is seeing a rise in Southern California commercial real estate occupancy numbers. This rise can be traced mostly to a lack of new industrial construction. This lack is causing current occupants to renew their expiring leases and remain where they are. Additionally, the economy is generally improving, and that means that more companies are positioning themselves with leases that are affordable now and might be more expensive later.

Here's an article by Jack Katzanek in the Press-Enterprise that explains the details:

REAL ESTATE: Vacancies shrink for industrial buildings in East Valley

"The owners of distribution and manufacturing properties in Inland Southern California would just as soon not remember 2009, when one-fifth of all those properties sat vacant. But the most current data in that area will certainly help wipe some of …"
http://www.pe.com/business/business-columns/commercial-real-estate-headlines/20130408-real-estate-vacancies-shrink-for-industrial-buildings-in-east-valley.ece

Southern California Commercial Real Estate Market
Appears To Be Firming Up

The commercial real estate market in Southern California has been posting numbers indicative of a "recovery" for a while now. This appears to be true for the first quarter of this year as well.

Southern California Commercial Real Estate.

Los Angeles Commercial Real Estate – Redevelopment Starts More Modestly

Los Angeles Commercial Real Estate:
Grand Avenue Development Project

Los Angeles Commercial Real Estate | Grand Avenue Project

Grand Park covers 12 acres in downtown Los Angeles, from Grand Avenue to Spring Street. It is designed to host concerts and other performances.
(Photo: Monica Almeida/The New York Times)

Los Angeles Commercial Real Estate Sees A Simple Start To A Bold Redevelopment Vision

Rather than sending shockwaves through the world of Los Angeles Commercial Real Estate and beginning the project with a huge commercial building, the new Grand Avenue Development Project just got off the ground with the opening of "Grand Park", a twelve acre area that replaces the old "Civic Center" with new and very attractive open space. BUT … the project has begun, and there is much more to come, if they can get it right

Here's an article from the New York Times by Peter Slatin that describes the entire thing …

Simple Start of a Bold Vision for Downtown Los Angeles

"LOS ANGELES — Community leaders, real estate magnates and urban planners hope the Grand Avenue Development Project, which would add several million square feet of commercial and cultural space, will provide a center of gravity and excitement to an area of the city that has lacked both." … NY Times
http://www.nytimes.com/2012/11/28/realestate/commercial/simple-start-in-overhauling-downtown-los-angeles.html

Los Angeles Commercial Real Estate Market Dictates What Comes Next

The original plans that the Grand Avenue Development Project put forth call for innovative use (for the area) combining multi-use commercial in a grand scale (pardon the pun). However, realities of the Los Angeles Commercial Real Estate market … such as the almost non-existant condo market … will force accommodations and compromises to be made. Here's hoping the developers will get it right … and that the market supports them.

Los Angeles Commercial Real Estate.
 

Commercial Real Estate: Values Rise Slowly As Recovery Spreads

Commercial Real Estate:
Values Rise Slowly As Recovery Spreads

Commercial Real Estate | Costa Real Estate Digest

Information Source: National Council of Real Estate investment Fiduciaries
(http://nreionline.com/)

Price Increases In Most Desireable Markets Have Slowed While The Recovery Spreads To Wider Commercial Real Estate Market

Commercial real estate values continue to rise, but not as quickly as they did in 2010 and 2011. Investors are taking a "wait and see" attitude right now … a phenomenon that occurs with every election year regardless of the political situation. Elections always mess up the markets.

The commercial real estate market is no exception. It experienced a fairly quick rebound in '10 and '11. Prices are still rising, but at a slower rate. At the same time we notice the slowing is in the quicker rising most preferred markets, while the slower, less preferable markets are keeping relatively the same pace. This actually means the recovery is spreading to the wider commercial real estate market as a whole, and is good news.

Here's a report from Bendix Anderson in the National Real Estate Investor:

Commercial Real Estate Values Rise Slowly, Steadily

"Numerous price indices show that commercial real estate (CRE) values are on the rise, although now more slowly than in the past. Experts say investors are playing a wait-and-see game that has limited the greatest amount of growth to the most sought …" National Real Estate Investor
http://nreionline.com/news/several_price_indices_show_cre_values_rising_07252012/

 

Recovery Spreading To General Commercial Real Estate Market

The CoStar index shows us that the "Investment Quality" portion of the commercial real estate market has led the recovery, but that now the "General" commercial market is beginning to follow. This is good news for the commercial real estate market as a whole.

Commercial Real Estate
 

Southern California Commercial Real Estate: Office Market May Be Rebounding

Southern California Commercial Real Estate:
Office Market May Be Rebounding

Southern California Commercial Real Estate | Costa Real Estate Digest

John Barganski, Vice President of leasing for Brookfield Office Properties, is photographed in front of the Earnst & Young Plaza in Downtown Los Angeles on July 18, 2012. (Mel Melcon/Los Angeles Times)

Good News For Southern California Commercial Real Estate As L.A. County Vacancy Rates Drop and Average Rents Climb

Good news for Southern California commercial real estate as 2nd quarter figures show office vacancy rates moved down a bit. Now this doesn't mean that landlords are home free … most markets are still considered to have the tenants in the driver's seat. However, it is movement in the right direction for a change.

Read about it in this LA Times article by Roger Vincent:

Southern California office market may be rebounding – Los Angeles …

Roger Vincent – "Southern California's long-languishing office market finally managed to utter a convincing peep in the … COMMERCIAL REAL ESTATE QUARTERLY REPORT…" Los Angeles Times
http://articles.latimes.com/2012/jul/22/business/la-fi-commre-overview-20120722

Southern California Commercial Real Estate Has A Long Way To Go

As we've been seeing for a long time now, the majority of transactions are lease renewals, and not new space being rented. As with everything else, Southern California commercial real estate is tied to the jobs market. Until we see improvement there … and significant improvement … all good news must be taken with a grain of salt.

Southern California Commercial Real Estate
 

Commercial Real Estate: Small Shopping Centers Are Good Investments Right Now

Commercial Real Estate:
Small Shopping Centers Are Good Investments Right Now

Commercial Real Estate | Costa Real Estate Digest | Orange County

Town Center Plaza Was Recently Sold To An Investor
(Photo: OC Register)

>

Orange County Commercial Real Estate Broker Outlines Good Area Investments

With lending rates low for qualified buyers, and property values down because of the sluggish market, G. Joseph Lising, an Orange County broker with Marcus & Millichap sees great potential in commercial real estate as an investment.

In this interview from the Orange County Register he outlines which segments of the commercial real estate market are viable investments right now, and why.

Read the interview here:

Broker: Shopping centers a hot investment

Jon Lansner – "Commercial real estate is shaking off its recession-era doldrums and investors are beginning to notice. G. Joseph Lising, broker with Marcus & Millichap in Newport Beach, offer us some insight into how the move is shaping up for investments in retail sites." … Orange County Register
http://www.ocregister.com/articles/real-364904-estate-joseph.html

Orange county Commercial Real Estate As An Investment

It's obvious that commercial real estate in Southern California has seen the bottom of the market and is looking at better days ahead. Orange County is certainly no exception to that. It's a well-known fact that smart investors are buying right now if they can. If you're among that number, a look at commercial real estate in Orange County might be wise.

Commercial Real Estate.

Commercial Real Estate: Southland Office Space Market May Be Bouncing Back

Commercial Real Estate:
Southland Office Space Market May Be Bouncing Back

Commercial Real Estate | Costa Real Estate Digest | Brion Costa

Area Office Space Leasing May Have Bottomed Out Showing Good Signs For Commercial Real Estate

The figures don't lie and they are encouraging for the first time in years. Office space leasing figures have risen just a tad over the last few months. That's completely different than the last few years, and may be signaling bottoming action in the commercial real estate market.

Here's the low-down from Roger Vincent in the LA Times:

Southland office market may be starting to bounce back

ROGER VINCENT – "It's times like this when people who have to make leasing commitments say, 'I may not find this in the next cycle,' so they take advantage," said John Barganski, Brookfield's head of leasing in Southern California. "We have achieved the bottom of the market." …Los Angeles Times
http://www.latimes.com/business/la-fi-commre-overview-20120722,0,6976766.story

Commercial Real Estate Still Depends On The Job Market

Although the news here is good, it's still true that the commercial real estate market … including commercial office space leasing … really depends on the job market. We may be seeing some bottoming action here, but we're a long way from steady growth. Until the job market improves, that's something we're not likely to see.

Commercial Real Estate.
 

Commercial Real Estate: Culver City Is Not The Same Quiet Place It Used to Be

Commercial Real Estate:
Culver City Is Not The Same
Quiet Place It Used to Be

Commercial Real Estate | Costa Real Estate Digest | Culver City

Street scene on Culver Blvd. in front of UGO Italian Bar, in Historic Culver City, July 19, 2012. Culver City, a long-time working-class annex to Los Angeles, is emerging as an urban center with its own personality and rising rents paid by upscale restaurants and merchants.
(PHOTO: Ricardo DeAratanha/Los Angeles Times)

Commercial Real Estate In The Area Is Doing Well And Rail Connections Bode Well For The Future

There was a time not so long ago when Culver City was a rather boring little community where the commercial real estate was old fashioned and outdated. That's not the case anymore. This bedroom community has morphed into an urban center with its own personality.

In the 1960's when the Santa Monica Freeway became the mode of travel in the area, Culver City became rather isolated. Commercial real estate in the area suffered as the city was bypassed by commuters. With the recent opening of light rail connections in the area, the future bodes well for this newly energized enclave.

Here's an interesting article from Roger Vincent of the LA Times.

Culver City evolves from sleepy community to urban center

Roger Vincent – "The commercial real estate market changed direction around 2000 with the creation of daring, sometimes outlandish office buildings designed by Eric Owen Moss in the formerly industrial Hayden Tract, on the eastern edge of town." …Los Angeles Times
http://www.latimes.com/business/la-fi-0722-commre-culver-city-20120722,0,4385123.story

 

The Next Few Years Will Tell The Tale Regarding
Commercial Real Estate In The Area

 As the Expo Line is completed all the way to Santa Monica, Culver City has a uniques situation on its hands. If commercial real estate development proceeds well, the area could attract folks from both the east and west. If the opportunity is allowed to pass, Culver City could simply become "another parking lot along the line". 

Let's hope those involved in development in the area do this the "smart" way and commercial real estate develops in a way that encourages the unique character Culver City is already showing.

Commercial Real Estate.
 

Los Angeles Commercial Real Estate: Venture Capital Jumps In LA County

Los Angeles Commercial Real Estate:
Venture Capital Jumps In LA County

Los Angeles Commercial Real Estate | Costa Real Estate Digest

Venture Capital Investment Indicate Possibility Of Coming Growth In Los Angeles Commercial Real Estate Market

The outlook for the Los Angeles commercial real estate market benefits today from this report from the LA Times. The amount of venture capital that savvy investors place in any area is usually a pretty good indicator of the health of the commercial market there. Well, it seems that venture capital investment in LA County has jumped recently, and that bodes well for the future of the Los Angeles commercial real estate market.

Here's the report from Ronald D. White of the LA Times:

Venture capital jumps in LA County, sags nationwide

RONALD D. WHITE – "Los Angeles stole a bit of the Bay Area's usual thunder in venture capital funding, with increases in both the number of deals and the amount of money invested during the second quarter. Los Angeles County companies attracted 44 deals totaling $545 …" … Los Angeles Times
http://www.latimes.com/business/la-fi-venture-capital-20120720,0,7173353.story


Los Angeles Commercial Real Estate Market Showing Many Good Indicators Recently

The jump in venture capital invested in LA County bodes well for the Los Angeles commercial real estate market. In these pages recently we've seen several such signs. That's not to say that Los Angeles commercial real estate is booming yet … but things are not as bad as they were just last year. That's good news.

Los Angeles Commercial Real Estate.
 

Los Angeles Commercial Real Estate: New Construction & Renovation At Long Beach And Port of L.A.

Los Angeles Commercial Real Estate:
New Construction & Renovation At Long Beach And Port of L.A.

Los Angeles Commercial Real Estate | Costa Real Estate Digest | Brion Costa
Infrastructure Growth & Improvement Indicates Brighter Days Ahead for
Los Angeles Commercial Real Estate

Here's another indication that Los Angeles commercial real estate may be in store for improving days ahead. Nothing reflects the future of any market better than the activity surrounding the building and maintenance of the infrastructure that supports that market. Transport of goods and wares is critical to the Los Angeles commercial real estate market … and part of that infrastructure is growing and improving rapidly with large building projects at both of the areas major sea ports.

Here's a report from the L.A. Times concerning what's going on in the ports of Los Angeles and Long Beach. This is a very strong indication of what wise investors expect in the Los Angeles commercial real estate market.

Ports of Los Angeles and Long Beach building at furious pace

Ronald D. White – "So much construction is underway that the new facilities by themselves would move more freight than the entire port of Savannah, Ga., which ranks No. 4 among the continent's ports." …Los Angeles Times
http://www.latimes.com/business/la-fi-ports-projects-20120720,0,3659702.story

 

Is Los Angeles Commercial Real Estate "Out Of The Woods"?

No one is saying that the Los Angeles commercial real estate market is "out of the woods" yet. However, this kind of investment in infrastructure … by both public and private entities … is a good indication that "smart money" expects better days ahead. 
 

Los Angeles Commercial Real Estate.

Southern California Real Estate Development: New Housing Investment In The Inland Empire

Southern California
Real Estate Development:

Inland Empire Receives $42 Million For Workforce Housing Development

Southern California real estate development | Costa Real Estate Digest | Brion Costa

If you're willing to invest in "workforce housing", you know there is serious expectation of ongoing devlopment in the near future.

In another report from the Inland Empire today by Debra Gruszecki of the Press-Enterprise, we learn some very encouraging news.

REAL ESTATE: $42 million invested in area development

DEBRA GRUSZECKI – "Canyon Capital Realty Advisors, in the past four months, has announced $42 million worth of financing initiatives on workforce housing development in Inland Empire commuter transit zones."
http://www.pe.com/business/business-headlines/20120718-real-estate-42-million-invested-in-area-development.ece


Canyon Capital Realty Advisors is a coumpany out of Los Angeles and is currently active in real estate development … now investing in the Inland Empire housing market. that's good news for all concerned.

Southern California Real Estate development