Southern California Commercial Real Estate:
Vacancies Shrink In East Valley
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:
"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 …"
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:
Grand Avenue Development Project
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 …
"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
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
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:
"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
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
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:
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
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