LOS ANGELES OFFICE PROPERTY SNAPSHOT – MARCH 2010

March 1, 2010 on 6:12 pm | In Fascinating Office Real Estate Information, Office Fodder, Statistics, Trends, Uncategorized, all |

By Jodi Summers

There was no money for buying commercial real estate in 2009, thus the global volume of commercial property sold last year fell 30% to $381 billion…but experts say growth is on the way. Among the bright spots is that sales of office, retail and industrial properties were up 29% collectively, concludes Real Capital Analytics.

“While the annual comparisons reflect broad declines since 2007, quarterly data show a marketplace that appears to be making a remarkable recovery,” suggests RCA.

Data suggests that volumes surged in Q4 to $147 billion, the first rise in seven quarters.

A measured economic recovery is underway in the nation, the state and Southern

California, confirms the 2010-2011“Economic Forecast & Industry Outlook” report by

the Kyser Center for Economic Research at the Los Angeles County Economic Development Corporation (LAEDC).

The outlook notes that in California, three sectors will see employment growth during 2010: information, private education and health services. Like the rest of the country, California unemployment will remain high with the LAEDC forecasting a 12.3 percent average rate in 2010, easing down to 11.9 percent in 2011.

“Southern California’s five metropolitan areas will also be in recovery mode during 2010,” said Jack Kyser, Founding Economist of the Kyser Center for Economic Research. “Like the nation and state, it will be a measured recovery, with more job losses and high unemployment rates in 2010.”

Los Angeles County is predicted see non-farm employment slip by 0.5 percent or by 19,200 jobs; Orange County should see a 0.6 percent decline or 9,200 jobs; Ventura County should also record a 0.6 percent drop in nonfarm employment or 1,700 jobs, while San Diego County should experience a 0.7 percent decline or 9,200 jobs. The Riverside-San Bernardino area will lag the other areas, with nonfarm employment falling by 1.1 percent in 2010 or by 13,000 jobs.

Despite the rise in commercial real estate noted by RCA, the Kyser Center for Economic Research predicts that “Nonresidential real estate activity will remain in the doldrums during 2010,” sites Jack Kyser, founding economist. “Office vacancy rates are at lofty levels around Southern California, with the Riverside-San Bernardino area highest at 23.6 percent at year-end 2009, and Los Angeles County low at 16.0 percent.”

In conclusion, optimism in the office real estate market is all relative. It’s better than it was last year, but still nothing like it was a few years ago.

“So far, investment activity is rebounding in a clear V shape but risks remain, and some fear the V could easily become a W,” cautions RCA. “Nevertheless, sentiment among investors is much improved and 2010 is starting with a broad but cautious sense of optimism.”

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We would like your real estate business. If we can provide you with more detailed information, please contact the SoCal Investment Group through Jodi Summers, Jodi@jodisummers.com. We look forward to working with you in your next real estate transaction.

**

http://www.globest.com/news/1604_1604/europe/183658-1.html

http://www.laedc.org/newsroom/releases/2010/100217_LAEDC%20Economic%20Forecast%202-17-10.pdf

http://www.joeroselaw.com/cms/Portals/0/Employees%20Group.jpg

9 Comments »

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  1. It really can’t get much worse.

    Comment by Moon on Motor — March 1, 2010 #

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  8. I am Alex from the Job2international, I am writing you to know if you could
    be interested to welcome one or 2 students to do an internship within your
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    Comment by job2international — March 18, 2010 #

  9. More businesses across Southern California are expanding their footprints, according to a recent report released by the Los Angeles Economic
    Development Corporation, indicating that some local businesses are optimistic about the future.

    The report tracks major business expansions in Southern California, which is a new lease or expansion of at least $1 million, or 20,000 square feet or more. In Orange County, there were 75 projects in 2009, up from 43 the previous year, and major projects there used 6 million square feet of space, up from 2.2 million in 2008. The Inland Empire had 37 projects (up from 27 in 2008) totaling 9.3 million square feet in 2009. Total square footage for the five-county region was 21.5 million, up 4.6 million from 2008.

    Comment by LAEDC — April 12, 2010 #

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