New survey reveals which SoCal commercial real estate sectors are growing in popularity.
The latest Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey revealed the current state of the commercial real estate market in Southern California. This biannual survey gathers the opinions of an anonymous panel of real estate executives who are currently working in SoCal’s real state markets. Curious to learn about this survey’s findings? Your California commercial realty advisors report.
According to the survey, the industrial real estate market will continue to grow, especially in the Los Angeles, Orange County, and Inland Empire areas. Respondents identify increasing e-commerce demands as the main force driving the growth of the industrial sector.
While the industrial sector is booming, the retail sector continues to decline. Panelists explain that this decrease in demand can be attributed to the growing popularity of online shopping. The report references the fact that there were 2,900 store closings in 2018 nationwide, while internet sales have increased by 10%. The report predicts that retail vacancy rates will continue through 2021.
The survey also identified a decline in the office sector in Los Angeles and Orange County that is expected to continue through 2021. While demand for office space has remained relatively stable, increasing inflation and vacancy rates are affecting this sector’s growth.
Finally, the report identified that strong demand for housing is leading to the growth of multifamily projects in Los Angeles and Orange County. Panelists predict that rental rates for multifamily housing space will rise faster than inflation and that occupancy rates will remain high. While job growth in Southern California is expected to slow, the development of multifamily projects will not be able to keep up with the increase in demand.
This is what your California commercial realty advisors have to report on the latest Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey. Want to keep up with the latest SoCal commercial real estate news, or need help securing commercial space of your own? If so, contact the experts at California Commercial Realty Advisors, Inc. Our dedicated team is ready to assist you with all your commercial and industrial real estate needs today.