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, multifamily and industrial were the clear leaders in investment activity, accounting for $17.2 billion of the total investment activity. In 2020, those asset classes will remain the leaders in the investment market.
“Moving forward, we expect sustained rebalancing towards multifamily and industrial in response to macroeconomic trends,” “Additionally, we are already seeing signs that the region’s frenetic content-creation pace is driving magnified investor interest in regional office space.”
Office and retail, on the other hand, are less attractive to investors. This has been a trend for several years and is a national trend as well. For retail, this is largely because of popularity of online shopping, which has driven retail investment down and industrial investment up.
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