What's in store for the second quarter with regards to commercial real estate in Los Angeles? George Pino, CEO of Commercial Brokers International, gives his outlook.
1. Retail - How is retail looking in Q2? Many store closings & bankruptcies lately – example: JCPenney, RadioShack, Macy’s, Sears, Payless, etc. Do you see more stores closing & companies going under bankruptcy?
2. Also, what will become of these stores on the Westside / Los Angeles? What’s going to happen to these properties? Who will take over these empty locations?
3. Interest rates were raised last month (now up to 1%). Do you see them being raised anytime in Q2?
4. Office – what are the vacancy rates on the Westside?
5. Multifamily – how does construction look like in Q2? Will more apartments continue to be built? Also, will regulations, like Santa Monica’s retrofit law (approved last month), inhibit investors from buying?