Office / Commercial
The California office market has also seen an increasing demand for space coming from the creative sector. Market analysts at Laguna Pacific drew attention to the trend, noting that between 2013 and 2014 alone, demand for dedicated creative space in California grew by 10 per cent. This trend is expected to continue, and demand will most likely grow at a fast pace until at least 2018.
Mixed-Use / Retail
Building on momentum from 2015, the Southern California retail market is experiencing positive changes across the majority of segments aiding in the markets strengthening fundamentals. New development remains on the rise as well as retail spaces that are actively under construction.
Technology / Aerospace
Tech tenants occupy around 5% of the office space in California, and 12% in West Los Angeles alone and are continuing to grow every day. Creative Office construction and the development of new tech facilities is at an all-time high and current demand for space from tech tenants is even higher.
The Southern California industrial market continues to build and trend upward. Construction and Development are soaring, absorption rates are increasing and vacancy rates are steadily remaining below 2%. With such little inventory the industrial market is perfectly positioned for build-to-suit opportunities.
The tourism and hospitality industry has always been strong in Southern California and is growing with the economy at a rapid rate. New construction and development as well as existing hotels and resorts undergoing complete renovation is taking place across all of California.
Biomedical firms focusing on medical devices and pharmaceuticals accounted for nearly 100,000 jobs in Southern California in 2015. In the coming years, the health care industry in Southern California is likely to see large gains in job growth and development of new medical facilities.
As employment rises in Southern California the demand for multifamily increases. Rental rates continue to rise and developers are building new multifamily to meet the demand. Existing multifamily is also being targeted to renovate and hold as an investment. All of these factors are driving development, construction, acquisition, and renovation of multifamily across Southern California.