The Small Space Marketplace

List Your Space

Find Space

Home About Us Executive Subscriber Membership RENTV Conferences Newsletter Contact Us Advertise
December 9, 2023
 Search RENTV
 The REview
News Home Page
Southern California
Northern California
Pacific Northwest
Prop. Management
Press Releases
 R. E. Marketplace
Service Providers
Property Spotlight
 RENTV  Conferences
Subscriber Login:
Forgot Password?

Printer-friendly Version   Email an Associate
Capital Markets: Los Angeles County Boasts Highest Sales Volume in U.S. in 2019


This report was provided by real estate services firm CBRE

Los Angeles continues to be a hotbed of investment activity as investors flock to the region’s robust supply of institutional assets and stable pricing. For the fourth straight year, sales volume within Los Angeles1 exceeded $28 bil. In 2019, this total established Los Angeles as the most active market for commercial real estate nationwide, according to data from Real Capital Analytics, surpassing Manhattan. The high transaction volume was driven by record-setting years for multifamily and industrial trades in the region (totaling $9.5 bil and $7.7 bil, respectively).

The shift of capital towards these asset classes reflects the increasing response of investors to macroeconomic shifts—changing demographics and the secular rise in e-commerce have proven to be tailwinds for the multifamily and industrial sectors, cementing their presence as preferred asset classes for investment. According to CBRE’s U.S Cap Rate Survey for H2 2019, cap rates for stabilized assets remain in-line with rates of the past four years across product types (between 4.0 and 4.5% for Class A multifamily and industrial), mirroring nationwide cap rate stability in the face of macroeconomic uncertainty and interest rate fluctuations.

Cross-border or foreign investment had been consistently strong in LA, but for the first time since 2012, international investors were a net seller—disposing of over $368 mil in assets. The shift can be partially attributed to Chinese activity, which declined to $64 million from a high of $1.5 bil in 2016, reflecting broader trade tensions with the U.S. and political pressures to repatriate capital. Institutional capital, though, more than filled the gap with $1.9 bil in net acquisitions, reversing a six-year period of being a net seller.

Source: CBRE Research, Real Capital Analytics, Q4 2019.

Return to the Archive page




Home | About Us | Newsletter | Contact Us | Executive Subscriber Membership | Executive Subscriber Home | Advertise
Southern California | Northern California | Pacific Northwest | Southwest | Retail | Multifamily | Financing | Property Management
Archives | Press Releases | Service Providers | JobWorks | Property Listings

Copyright © 2023 by RENTV, All Rights Reserved
Website designed by Regency Web Services, Inc. and powered by Lightning Media