Los Angeles County accounts for nearly 9 million
people in the Southern California commercial real estate
market, occupying 180 million sq.ft. of office space and
900 million sq.ft., of industrial space. Office and industrial
space make up the backbone of the professional and industrial
base that houses the southern California economy. As the
economy fluctuates, national market indicators, such as
employment figures, can affect the local economy and for
example, jobs are gained or lost. Likewise, the need for
office or industrial space follows these trends, albeit
with some lag. By following these market indicators, you
as a tenant in the can position your purchasing power to
your advantage and make market conditions work for you!
Key indicators include:
Los Angeles is a composition of seven distinct sub-markets
for office and industrial space including: Downtown Los
Angeles, the Tri-Cities, the West Side, Mid-Counties, San
Fernando Valley, San Gabriel Valley and South Bay. Each
sub-market is again divided into territories that include
superior locations and less preferable ones. On a product
level, office and industrial buildings range from "A"
Class to "C" class ("A" being most desirable)
with newer buildings (Construction) often providing state
of the art facilities and amenities that demand a higher
market leasing rate.
By comparing the year-on-year percentage changes in the
four key indicators, a tenant can project how landlords
in the market may react, more or less favorably, to a proposal
to lease space. Keep these four key indicators in mind when
researching local markets to position your company in the
best light and take advantage of the market!
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