by Jodi Summers
There may have been a cataclysmic political shift, but the current commercial real estate cycle continues on its regular course and industrial real estate in Los Angeles is still fabulous.
While multifamily and office segments appear to be topping out, industrial is still on a strong upward trajectory. E-commerce fulfillment is a driving force for industrial, just as it is annihilating the demand for retail real estate. Zoning constraints will continue to propel industrial real estate on its upward trajectory.
“The amount of warehouse space is not enough. Supply can’t keep up with demand at this point,” observed Allen Matkins partner John Tipton.
Industrial in the outer areas like the Inland Empire, is getting built with relative ease, but more centrally located industrial supply is hard-pressed to meet demand needs, which impacts pricing.
This Anderson School surveyed respondents in San Francisco, Silicon Valley, East Bay, Los Angeles, Orange County and San Diego about markets and building conditions three years out. The three-year outlook allows for entitlements, environmental reviews and sales/purchases. Each panel expressed optimism for industrial through 2019. Additional forces affecting a positive industrial market are manufacturing, export of goods to Asia and Mexico, and imports from Asia coming through California ports.
There are fine commercial real estate investments out there. For more information please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – firstname.lastname@example.org or 310.392.1211, and let us move forward together.