L.A. Retail: A Tale of Two Pandemics

By Nellie DayAll of Los Angeles County might have been under the same restrictions throughout the pandemic, but their emergence from this period reveals a lot about the localized retail environments. “Los Angeles’ retail market has weathered COVID better than many other markets around the country,” says Matthew May, founder of May Realty Advisors in the Los Angeles submarket of Sherman Oaks, Calif. “However, the recovery has favored a diverse group of suburban …

June 22, 2022California, Market Reports, Retail, Western, Western Market Reports

San Diego’s Unique Retail Environment Proves Pandemic-Resilient

By John Hickman, Managing Director, NewMark MerrillSan Diego may be California’s second most populous county, but you wouldn’t know it by strolling through one of its many business districts. The county has grown up since its early days as a small military outpost, yet today its hundreds of communities and neighborhoods still impart a small-town feel.[caption id="attachment_318464" align="alignright" width="150"] John Hickman, Managing Director, NewMark Merrill[/caption]The …

June 3, 2022California, Market Reports, Retail, Western, Western Market Reports

LA Office Market Struggles, but Tenants, Investors See Opportunity

By Jerry Holdner, Southern California Region Lead, Avison YoungThe Greater Los Angeles office sector is experiencing a fragmented and slow recovery post-pandemic as the fallout is being addressed in various ways by office tenants, investors and owners. The first quarter of 2022 ended with a 15.4 percent office vacancy rate, which was up from 15 percent at the end of 2021. It is also up from the previous high of 13.1 percent that was recorded in 2010. We started to see several companies …

May 17, 2022California, Market Reports, Office, Western, Western Market Reports

LA Apartment Market Stays Tight, Values Soar

By Kimberly Stepp, Principal, Stepp CommercialThe strength of the Greater Los Angeles apartment market has exceeded expectations coming out of the pandemic. Despite reports of an exodus from California and population decline in the metro, apartment rental demand is seeing an all-time high, with net absorption of units running at its highest level in decades. As a result, vacancy is at a low 3.4 percent, lower than the pre-COVID level of 4.4 percent. Asking rents have seen a 7.7 percent …

May 10, 2022California, Market Reports, Multifamily, Western, Western Market Reports

Los Angeles Industrial Market Reaches New Heights

By Elizabeth Capati, Associate, Colliers Greater Los AngelesA new trend has emerged across Greater Los Angeles’ industrial market that has developers waiting for under-construction projects to capture the highest possible rent near the final development stages or closer to their target completion dates. With rents increasing at historical rates, a certain hesitancy exists, and companies are less likely to sign a lease during earlier development stages. In some instances, landlords …

April 15, 2022California, Industrial, Market Reports, Western, Western Market Reports

Orange County’s Retail Sector Looks Resilient in 2022

By Glenn R. Rudy, Senior Managing Director, Retail Capital Markets, NewmarkWe all know the commercial real estate industry is cyclical and there are casualties in every cycle across asset classes. However, retail seems to always be in everyone’s crosshairs. It quite frequently is the tail wagging the dog across institutional investors. Consider this, though: if there is one thing the pandemic has proven (once again), it is that the retail sector as a whole is one of the most …

April 6, 2022California, Market Reports, Retail, Western, Western Market Reports

Orange County’s Office Market Ebbs, Flows

By Bob Caudill, Executive Vice President, ColliersWe continue to see a flight by tenants into low-rise office properties, typically four stories or less, and out of high rises. This trend began pre-pandemic, but COVID has undoubtedly accelerated its movement. Asking rates in the market have flattened, while concessions like free rent, beneficial occupancy and improvement allowances have increased. The surge in construction costs continues, putting stress on the economics of lease …

March 25, 2022California, Market Reports, Office, Western, Western Market Reports

Orange County Retail Recap: Keep Calm and Carry On

By Terrison Quinn, Managing Principal, SRS Real Estate PartnersDespite the headwinds facing the Orange County retail property sector in 2021, retailers experienced record sales, while shopping center owners realized all-time-high property values. Orange County’s retail vacancy rate also decreased in 2021 from 4.58 percent to 4.32 percent as compared to 2020, according to CoStar. Meanwhile, rents increased from $33.12 per square foot, per year to $34.55 per square foot, per year — …

March 18, 2022California, Market Reports, Retail, Western, Western Market Reports

Lack of Supply Drives New Industrial Development in Orange County

By Garrett McClelland, Vice President, JLLWith a global pandemic still in flux, strong demand for Orange County industrial remained constant throughout 2021. As we start the New Year, signs of a slowdown are nowhere in sight. Orange County’s overall vacancy was at 2 percent last quarter, which ranks among the lowest nationally. Demand continues to outpace supply — with limited inventory bringing the vacancy rate down and driving rents to historic highs. With very few viable …

March 3, 2022California, Industrial, Market Reports, Western, Western Market Reports

The Inland Empire’s Office Sector Comes Into its Own

By Mark McAdams, Vice President, JLL While the Inland Empire is more well-known for its industrial real estate, the region’s office market has continued with its own success and stability pre- and post-COVID. As employees of office buildings seek refuge from high home prices in neighboring Los Angeles and Orange counties, occupiers equally appreciate the accommodating office rental rates while supporting their employee’s draw to the region.The current office market is in nearly …

February 22, 2022California, Market Reports, Office, Western, Western Market Reports