Commercial Real Estate Outlook - Q2 2017 - Los Angeles Westside
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.
Outline:
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?
Since online retail is growing, and there are not enough industrial buildings, people are forced to find new ways of storing items. Although the demand for big-box industrial space still exists in the urban fringe, the last mile warehouse is about getting all you need close to the customers. After all, you can refill it with trucks from your regional distribution center whenever you need it. Look for spaces in the thousands of feet in buildings that have similarly sized floor plates.