Cap Rates Expected to Stabilize in L.A. This Year
Cap rates are likely to stabilize this year in Los Angeles. According to a new report, moderate economic growth and investor demand will stabilize for apartments, retail, hotels, and office. Industrial cap rates, however, will continue to compress in the region. This trend follows a tightening of cap rates across asset classes in the second half of 2019. Apartment cap rates are 4.8% for infill product and 5.4% for suburban product, and hotels are at 8.3%, according to the rep
Los Angeles Retail Market Sees Nearly $5 Mil in Transactions for 2019
The Los Angeles economy continued to expand through the fourth quarter of 2019 with healthy employment growth of 1.8% year-over-year (YoY), adding 69,200 jobs through December 2019. The region boasts a Gross Metro Product (GMP) of $743 bil, which has grown 1.6% YoY. Tourism, a critical driver of retail activity, remains thriving as an estimated 50 million tourists visited the entertainment capital in 2019. According to Moody's Analytics, Los Angeles retail sales hit record le
SpaceX Makes Los Angeles Port Area Site a Starting Point in Aiming for Mars
A 12-acre industrial site near the Port of Los Angeles is set to become a starting point in humanity's journey to Mars. The Los Angeles City Council is backing SpaceX, led by billionaire and automaker Tesla founder Elon Musk, in its plans to lease an industrial property near the Port of Los Angeles to make aerospace parts that could help the tech firm in its quest to build a rocket that would enable travel to Mars. SpaceX is headquartered in the Los Angeles suburb of Hawthorn
2020 Sales Volumes Will Continue to Grow in Los Angeles
Los Angeles is expected to have another solid year of commercial real estate investment sales volume. Last year, Los Angeles had the highest sales volume in the US with $28 billion in total sales activity, according to research from CBRE, and this year, sales volume should at least match if not exceed the sales activity last year. All indicators suggest that sales activity in 2020 will be in-line with—or slightly above—the volume of the last several years. In 2019, multifamil
