Known as the second largest city in the United States, Los Angeles continues to be an attractive location for residents and businesses alike. In 2016, the population for Los Angeles reached just over 4 million residents, and there are no signs of slowing down in the future. As a result, businesses around the nation are looking to relocate to the famous California city. Before they make the transition, they should know the answer to the question, what does the commercial real estate market look like right now?
Why Is Los Angeles A Good Location?
For the third year in a row, Los Angeles was named as the most attractive commercial real estate market in the United States. This indicates a healthy market that is open to more business. Since commercial real estate is such a wide range, let’s examine some of the biggest markets right now.
Not only has Los Angeles established itself as a leader in the United States, but it has attracted a large number of companies interested in establishing themselves. With a close vicinity to other major cities, including San Diego and San Francisco, it may not be surprising to learn that many technology companies are making a move to the sunshine state. While rent has seen a steady increase in recent years, due to the influx of new companies, Los Angeles will continue to remain a major hub in the coming years.
More commonly known as apartment buildings or townhomes, multi-family homes are a growing need in the Los Angeles area. Based on the high demand for rentals in the area, the percentage of developers who are planning to an additional project in the next year has seen a significant increase, with 80% of developers disclosing that they had plans for another project in the future. This signifies a 63% increase from 2017, making it apparent that multi-family homes are a smart investment.
Commercial real estate investing can be an exciting and secure area to enter. It is important to remember to do your homework first, as it can be tricky at first to determine the best way to invest in commercial real estate. With the right approach and tactics, commercial real estate investing in Los Angeles can be a lucrative business.
About The Author
Jack Nourafshan is a distinguished real estate development professional and entrepreneur in Los Angeles, California. He is the President of Reliable Properties, a real estate acquisition, development and management company in the Los Angeles area. Jack has over 30 years of professional experience that has made him known as a leader in the industry. Jack Nourafshan started a blog on entrepreneurship to share his insight and experiences for aspiring entrepreneurs.