Industrial Shift: A Perspective on the Transforming Commercial Real Estate Scene in LA

The commercial real estate landscape in Los Angeles County is currently undergoing some exciting changes. Recent trends and forecasts were discussed at a major industry event, the Commercial Economic Issues & Trends Forum, held on May 9, 2023. This gathering of industry experts and thought leaders served as a platform for insightful discussions and analyses about the current state and future of the commercial real estate market in the region. In the heart of this vibrant market, several noteworthy transactions have taken place. For instance, two senior housing properties were sold for a substantial amount in Orange, California, and a full-floor lease was secured for a renowned university at a prime location in North Hollywood, California. These transactions underscore the active and diverse nature of the Los Angeles commercial real estate market.

When it comes to leasing activity, the Greater Los Angeles area has seen some interesting dynamics. The first quarter of 2023 recorded a total of 2.2 million sq. ft. of leasing activity, marking the lowest level since the last quarter of 2020. However, the industrial sector told a different story, with leasing activity totaling 10.6M sq. ft., a 21.1% increase quarter-over-quarter. This made Q1 2023 the strongest quarter of leasing since Q3 2021. These trends highlight the complex and multifaceted nature of the commercial real estate market in Los Angeles County, with some sectors experiencing a slowdown while others are witnessing increased activity.