Los Angeles is a fast-growing commercial real estate market. While traditionally cities such as New York, London and Tokyo have topped the global CRE market, they are now being challenged by several other cities, and Los Angeles appears to be at the top of this new wave. With transactions totaling $22.9 billion in 2017, Los Angeles surpassed New York City in world rankings and was second only to London.
The results of a biannual survey of commercial real estate executives in California have started the year on an optimistic note. Produced by a partnership of the UCLA Anderson Forecast and Allen Matkins, the Winter/Spring 2018 survey findings showed an uptick in optimism among investors and developers who six months earlier had believed that the state's CRE markets were peaking.
eCommerce has had a significant impact on the retail sector in recent years. However, companies in California and around the country will need to take a look at other factors to help them meet customer needs today and into the future. One factor that must be taken into account is the fact that roughly 1 million people per week are moving into cities. This trend is happening throughout the world, and it may result in an increase in spending.
California residents who are looking to develop their portfolio and enter a new, lucrative arena of business may be considering investing in property. While residential real estate can be the first form of property investment that comes to mind, whether in the form of buying and re-selling homes or through becoming a residential landlord, commercial properties can be an excellent investment for many. Commercial buildings can bring a different kind of business that many investors prefer for its profitability and stability.