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Monday, May 27, 2024

Investment Outlook Bright in L.A.

Los Angeles is expected to be among the top performing markets for industrial and office real estate investments in the next five years, according to a report just released by Grubb & Ellis. The report ranks the region No. 1 in promising greatest returns for industrial and multi-family real estate investments and No. 3 for office and retail real estate out of 50 markets around the country. The Grubb & Ellis report found a mixed bag of prospects generally with respect to leasing in the various sectors of real estate, particularly in the short term. The report noted that the office market recovery would likely be “slow and geographically uneven.” It found that, in general, demand would continue to exceed supply in the industrial sector, and the retail sector is likely to show the strongest tenant demand. The multi-family market, though generally soft throughout 2004, is expected to pick up thanks to rising interest rates and an aging baby boom generation expected to eschew their suburban lifestyles for urban apartment living as they become empty nesters, Grubb & Ellis said. “In many respects, the slow to moderate growth forecast for 2005 is nearly ideal for real estate,” said Robert Bach, national director, market analysis for Grubb & Ellis.

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