Report Likes L.A.’s Future In Commercial Real Estate

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The commercial real estate market in the L.A. metro area is expected to remain vibrant in the coming years, even as analysts forecast a slowdown in other parts of the state, according to a study released last week.

The summer-fall 2017 Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey says that sales and leasing deals in Hollywood and Silicon Beach are leading the way locally. The L.A. area has robust demand for media content, spurring growth in the local entertainment and tech industries, according to the report.

Analysts in the survey say there aren’t enough office products in the pipeline to meet all of the local demand and expect rents and occupancy to increase through 2020.

The study says office projects in other major markets in the state, such as the San Diego metro area and Orange County, has dropped because of a lack of developer confidence in the ability of rents to keep up with inflation.

Optimism among developers has abated, according to the report, despite a low jobless rate and increases in consumer income and spending.

– Neil Nisperos

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