ADVERTISEMENT
  • About
  • Contact
  • Testimonials
  • Demographics & Advertising Rates
Monday, January 18, 2021
Search
    Generic filters
    California Business Journal
    63 °f
    Los Angeles
    59 ° Tue
    65 ° Wed
    63 ° Thu
    57 ° Fri
    54 ° Sat
    52 ° Sun
    • Front Page
    • Business
      • Insurance
      • Real Estate
    • Finance
      Nicholas Yrizarry

      In Perfect Alignment

      Invest-in-Your-Childs-Future

      Start Investing Now For Your Child’s Future

      IMG 8554 - From a “Wish List” to a “Reality List”

      From a “Wish List” to a “Reality List”

      ScamKeyboard

      5 All Too Common Investment Scams (and How to Avoid Them)

    • People
    • Featured
      Silicon V Real Instituto

      The Entrepreneurs ‘Angell’

      West Gary, MinTech’s Chief Technical Officer2

      Dust Buster

      Flags-of-the-world

      The Impact of Covid: Racing to Buy Second Citizenships

      Photonic Chip

      The First Photonic Chip Has Arrived. What Does That Mean For Augmented Reality?

      Supreme Court Sports Betting

      California’s Bid for 2022 Sports Betting Legislation

    • Technology
      West Gary, MinTech’s Chief Technical Officer2

      Dust Buster

      Plaxonic Technologies Innovate

      Plaxonic Technologies: Leading Innovation

      tech devises of the future - Latest Devices to Make Our Lives Easier

      Latest Devices to Make Our Lives Easier

      hands of business people typing on a keyboard - Should You Start An Online Business: 4 Things To Consider First

      Should You Start An Online Business: 4 Things To Consider First

    • Law
      law books

      Career paths available with a law degree

      background-check

      How Do Background Check Sites Find Your Information?

      hurricane

      Weathering the Storm

      tower-bridge-london-england

      How to apply from the USA to one of the most famous law universities in the UK

    • News
      AB3088

      California COVID-19 Rent Relief Policies Economically Unsustainable

      american-flag

      Dreamers Won Full Restoration of DACA…What Now?

      Airplane Landing

      London Heathrow one step closer to controversial third runway

      Payment Gateway Online Payment Services

      California Mutual Partners with Invoice Cloud to Improve Insurer’s Efficiency and Simplify Process for Policyholders

    • Human Interest
      • Food
      • Art & Culture
    • Education
      Monetize student blog

      When to Monetize Your Student Blog & How to Do It?

      Office Equipment

      4 Pieces of Office Equipment that Will Make Life Easier

      San Diego skyline

      Insider Corner: David Ebrahimzadeh Discusses The 10 Best California Towns to Invest In

      Dan Lok

      Startup Central: Dan Lok’s ‘Take’ on How to Get Your Startup Off the Ground

    • Health & Fitness
      Eesha Patel feature

      Multi-Dimensional Reality

      166521182

      One Hour Each Morning for the Remaining 23

      The Surprising Link Between Gut Health and Mental Health - The Surprising Link between Gut Health and Mental Health

      The Surprising Link between Gut Health and Mental Health

      87 CBN vs CBD How Are the Benefits Different - Commonly Asked Questions About CBD Oil in the USA

      Commonly Asked Questions About CBD Oil in the USA

    California Business Journal
    • Front Page
    • Business
      • Insurance
      • Real Estate
    • Finance
      Nicholas Yrizarry

      In Perfect Alignment

      Invest-in-Your-Childs-Future

      Start Investing Now For Your Child’s Future

      IMG 8554 - From a “Wish List” to a “Reality List”

      From a “Wish List” to a “Reality List”

      ScamKeyboard

      5 All Too Common Investment Scams (and How to Avoid Them)

    • People
    • Featured
      Silicon V Real Instituto

      The Entrepreneurs ‘Angell’

      West Gary, MinTech’s Chief Technical Officer2

      Dust Buster

      Flags-of-the-world

      The Impact of Covid: Racing to Buy Second Citizenships

      Photonic Chip

      The First Photonic Chip Has Arrived. What Does That Mean For Augmented Reality?

      Supreme Court Sports Betting

      California’s Bid for 2022 Sports Betting Legislation

    • Technology
      West Gary, MinTech’s Chief Technical Officer2

      Dust Buster

      Plaxonic Technologies Innovate

      Plaxonic Technologies: Leading Innovation

      tech devises of the future - Latest Devices to Make Our Lives Easier

      Latest Devices to Make Our Lives Easier

      hands of business people typing on a keyboard - Should You Start An Online Business: 4 Things To Consider First

      Should You Start An Online Business: 4 Things To Consider First

    • Law
      law books

      Career paths available with a law degree

      background-check

      How Do Background Check Sites Find Your Information?

      hurricane

      Weathering the Storm

      tower-bridge-london-england

      How to apply from the USA to one of the most famous law universities in the UK

    • News
      AB3088

      California COVID-19 Rent Relief Policies Economically Unsustainable

      american-flag

      Dreamers Won Full Restoration of DACA…What Now?

      Airplane Landing

      London Heathrow one step closer to controversial third runway

      Payment Gateway Online Payment Services

      California Mutual Partners with Invoice Cloud to Improve Insurer’s Efficiency and Simplify Process for Policyholders

    • Human Interest
      • Food
      • Art & Culture
    • Education
      Monetize student blog

      When to Monetize Your Student Blog & How to Do It?

      Office Equipment

      4 Pieces of Office Equipment that Will Make Life Easier

      San Diego skyline

      Insider Corner: David Ebrahimzadeh Discusses The 10 Best California Towns to Invest In

      Dan Lok

      Startup Central: Dan Lok’s ‘Take’ on How to Get Your Startup Off the Ground

    • Health & Fitness
      Eesha Patel feature

      Multi-Dimensional Reality

      166521182

      One Hour Each Morning for the Remaining 23

      The Surprising Link Between Gut Health and Mental Health - The Surprising Link between Gut Health and Mental Health

      The Surprising Link between Gut Health and Mental Health

      87 CBN vs CBD How Are the Benefits Different - Commonly Asked Questions About CBD Oil in the USA

      Commonly Asked Questions About CBD Oil in the USA

    Search
      Generic filters
      California Business Journal

      DRIVING FORCE

      by Daniel Coats, Staff Writer, California Business Journal
      A A
      2 - DRIVING FORCE
      Share on FacebookShare on Twitter

      Los Angeles County is a leading real estate market in multifamily residential and commercial construction as downtown and other previously underserved areas are revitalized. Steve Basham, senior market analyst for CoStar Group Inc., looks at the state of the L.A. market and where it is headed.

      By Daniel Coats, California Business Journal

      With a population of more than 10 million and stretching from the world-class harbor facilities of Long Beach and San Pedro to the desert communities of the Antelope Valley, Los Angeles County is a behemoth in the national – and global – real estate industry, ranking third in the U.S. behind New York City and Washington, D.C. The county is consistently named the premier market for international real estate investors in North America.

      “The drivers for Los Angeles are the geographical size and population, the broad and diverse economy, and the young and internationally diverse population with a wide-range of skill types. Los Angeles does not have a dependency on one sector of the economy, as is the case in other markets such as Seattle or Washington, D.C.,” says Steve Basham, senior market analyst for CoStar Group Inc., a leader in American commercial real estate data and research that has invested more than $1 billion in related research and monitoring, including extensive recent study of the Los Angeles region.

      2 - DRIVING FORCEDespite widespread interest in L.A. real estate, Basham says that a lack of developable land, supply constraints, regulations and community opposition combine to make new construction challenging in the City of Angels.

      “It is relatively difficult to get new projects built in Los Angeles compared to other parts of the country,” he says. “But this also means that those who invest in commercial real estate know that they will not get a high level of competition from new things being built in the city.”

      Downtown Los Angeles has experienced a major renaissance in recent years as upscale apartments, condos, corporate offices, shopping, dining and entertainment venues have returned to the heart of the nation’s second-largest city. Today, the area is one of the top five apartment construction markets in the U.S.

      Basham sees this revitalization as following an opposite trajectory to development in other communities.

      “Many times, residential builders will follow the jobs, where new offices are being built,” he says. “But in downtown L.A., the reputation as a cool place to live started to grow, which triggered apartment and multifamily housing development, which has brought younger, upscale, well-educated people. This has made employers and office developers look at downtown differently.”

      International investors have been at the forefront of the downtown L.A. expansion and renewal. Cho Yang-ho, CEO and chairman of Korean Air, revived the Wilshire Grand Tower. China-based Oceanwide Holdings is responsible for the mixed-use Oceanwide Plaza and Ocean Metropolis near the Staples Center. The Canadian Omni Group has constructed several major downtown residential towers.

      “Collectively, these companies have reinvented the L.A. skyline with the size and scope of their projects. If you are fortunate and deep-pocketed enough to build into L.A., you know that you’ll be somewhat insulated from economic shocks that might hit smaller, less-diversified markets,” Basham says.

      Related

      Monetize student blog

      When to Monetize Your Student Blog & How to Do It?

      January 16, 2021
      dna-double-helix-chemical-formulas-computer-generated-d-rendering-medical-research-background-rotation-184787276

      Who is part combination scientist, inventor, anthropologist, explorer, designer, engineer, architect, reporter, journalist, museum curator, travel guide, therapist, teacher, trainer and athletic coach.

      January 14, 2021
      Load More
      SBasham CoStar Headshot preview - DRIVING FORCE
      Steve Basham, senior market analyst for CoStar Group Inc., a leader in American commercial real estate data and research that has invested more than $1 billion in related research and monitoring, including extensive recent study of the Los Angeles region.

      As a prime example of revitalization, Basham touts the former Ford factory in the Arts District, which has been transformed into creative office space. In 2016, Warner Bros. Entertainment Group moved its headquarters from Burbank to this site in that year’s largest lease citywide.

      “The conversion of older, obsolete industrial facilities to modern, attractive, creative offices with upscale amenities that attract high-end tenants has been a major driving factor in the office market this cycle,” he says.

      ADVERTISEMENT

      Due to the influx of new supply, apartment rents have declined slightly downtown, though Basham sees the long-term prospects as positive, as leases and overall interest in the area continues to increase.

      In addition to downtown L.A., a number of other areas, including Hollywood, Playa Vista, Glendale, Pasadena and Woodland Hills, are seeing increased construction. In many cases, Silicon Valley tech companies are taking advantage of the entertainment and production expertise in the L.A. region to locate their content and marketing operations there.

      While Los Angeles County retains an allure that has fueled its economy for more than a century, the population is not growing nearly as quickly as in other areas of the Golden State.

      “There are a lot of people moving out of Los Angeles every year, though it is a popular area for international migration. Combined with natural increase, it is enough to keep the population growing slowly,” Basham says, noting that other areas, including the Inland Empire, Orange County and San Diego County, have seen higher growth rates. Within L.A. County, the far eastern communities in the Pomona and San Gabriel Valleys are seeing the most rapid population growth.

      Basham notes that earlier in this business cycle, apartment rents were growing at 6% annually in Los Angeles County, but the increase declined to about 3% in 2017, which is part of a broader national trend. Any rent hikes bring discussions of affordable housing to the forefront as some parts of the Los Angeles market, such as Beverly Hills and Santa Monica, have among the highest rents in the country. One of the most expensive properties in CoStar’s database is Ten Thousand in Century City, where the penthouse unit reportedly leases for a stratospheric $65,000 per month.

      Basham does not anticipate rents decreasing significantly.

      “The underlying dynamics of strong demand, a healthy economy and the inability to build enough housing to keep up with demand should keep rents going up, albeit slower than previously,” he says.

      Affordable housing is a major issue in the 2018 gubernatorial election cycle. Democratic hopeful Antonio Villaraigosa, who served as Los Angeles mayor from 2005 to 2013, is touting smaller infill developments, as opposed to the sprawling tract homes of the suburbs as a solution to high housing costs, as well as facilitating more reasonable commutes and sustainable communities.

      1 1 - DRIVING FORCE“Accelerated building near transit stops could be a key piece of the puzzle in alleviating the ongoing housing crunch in Southern California,” Basham says.

      With that in mind, central but underutilized areas such as South Los Angeles are likely to be future growth areas, due to a prime location near employment magnets and transit lines. Basham notes that Inglewood, once a byword for crime and blight, posted one of the strongest rent growths of any submarket in the county in 2017.

      “With the right catalyst and willpower, and enough resources, anywhere in L.A. that is not dense and built-up has a lot of potential.”

      screen 5 - DRIVING FORCE

       

       

      Steve Basham

      Senior Market Analyst

      Co-Star Group

      8910 University Center Ln. Suite 300

      San Diego, CA 92122

      858-458-4900

      Tags: 2018affordable housingAmericaAmericanBeachCACaliforniaCalifornia mediaCEOchinacommercialcommercial real estateCoStar Group Inc.developmentDiegoeconomyElectionEstateGlendaleGrouphealthyHollywoodindustrialInland EmpireinvestorsjobsLandLong BeachLos AngelesLos Angeles real estate marketmarketingmultifamily housingnaturalNew YorkOrange CountyPasadenaPlaya Vistapropertiesreal estateregulationsrentresidentialSan DiegoSan Diego CountySilicon ValleySouthern CaliforniastudysustainableValley

      Get real time update about this post categories directly on your device, subscribe now.

      Unsubscribe
      ADVERTISEMENT
      Previous Post

      THE ONE

      Next Post

      BACKYARD BEAUTY

      Daniel Coats, Staff Writer, California Business Journal

      Daniel Coats, Staff Writer, California Business Journal

      WHAT TO READ NEXT

      Monetize student blog
      Education

      When to Monetize Your Student Blog & How to Do It?

      January 16, 2021
      Office Equipment
      Education

      4 Pieces of Office Equipment that Will Make Life Easier

      January 15, 2021
      dna-double-helix-chemical-formulas-computer-generated-d-rendering-medical-research-background-rotation-184787276
      Business

      Who is part combination scientist, inventor, anthropologist, explorer, designer, engineer, architect, reporter, journalist, museum curator, travel guide, therapist, teacher, trainer and athletic coach.

      January 14, 2021
      San Diego skyline
      Education

      Insider Corner: David Ebrahimzadeh Discusses The 10 Best California Towns to Invest In

      January 14, 2021
      Dan Lok
      Education

      Startup Central: Dan Lok’s ‘Take’ on How to Get Your Startup Off the Ground

      January 14, 2021
      Lisa Thee
      Business

      Launch Pad

      January 14, 2021
      Next Post
      Scanlan2 grande - BACKYARD BEAUTY

      BACKYARD BEAUTY

      Follow Us

      ADVERTISEMENT

      Categories

      • Art & Culture
      • Business
      • Editor's Choice
      • Education
      • Featured
      • Finance
      • Food & Dining
      • Health & Fitness
      • Human Interest
      • Insurance
      • Law
      • Marketing
      • Medical
      • News
      • People
      • Popular
      • Real Estate
      • Social Media
      • Technology
      • Uncategorized

      CBJ Partner Firebrand Media

      Laguna Beach Independent Newspaper

      Laguna Beach Magazine

      Laguna Beach City Guide

      On The Menu Laguna Beach

      Newport Beach Independent Newspaper

      Newport Beach Magazine

      Newport Beach Country Club Magazine

      Coastal Real Estate Guide (NB,LB, CDM)

      Montage Magazine

      Monarch Beach Resort Magazine

      Pacific Coast Magazine (SoCal)

      Omni Escapes Hotel Magazine

      Sea Island Life Magazine

      Salamander Hotel & Resorts Magazine

      Bespoke Concierge New York

      Evans Hotels

      View our entire portfolio here

      ADVERTISEMENT
      ADVERTISEMENT
      Facebook Twitter LinkedIn LinkedIn Instagram
      C B J   LOGO  SVG-01
      • About
      • Contact
      • Testimonials
      • Demographics & Advertising Rates

      Newsletter

      Top Stories

      • Judge gavel, scales of justice and law books in court

        Lawsuit Basics: How Much Does It Cost to Sue Someone?

        0 shares
        Share 0 Tweet 0
      • REPORT: TECH GIANT CISCO ABOUT TO LAY OFF 14,000

        0 shares
        Share 0 Tweet 0
      • The DealMaker

        0 shares
        Share 0 Tweet 0

      Latest Articles

      Monetize student blog

      When to Monetize Your Student Blog & How to Do It?

      January 16, 2021
      Office Equipment

      4 Pieces of Office Equipment that Will Make Life Easier

      January 15, 2021
      dna-double-helix-chemical-formulas-computer-generated-d-rendering-medical-research-background-rotation-184787276

      Who is part combination scientist, inventor, anthropologist, explorer, designer, engineer, architect, reporter, journalist, museum curator, travel guide, therapist, teacher, trainer and athletic coach.

      January 14, 2021

      California Business Journal | California Business News, California News Media, California business articles | Orange County, Los Angeles, San Diego, Inland Empire, Northern California, San Francisco | Huntington Beach CA 92649 | (949) 648-3815
      ALL RIGHTS RESERVED BY CALIFORNIA BUSINESS JOURNAL.
      Site Design by 1REALTOUR

      Search
        Generic filters
        • Front Page
        • Business
          • Insurance
          • Real Estate
        • Finance
        • People
        • Featured
        • Technology
        • Law
        • News
        • Human Interest
          • Food
          • Art & Culture
        • Education
        • Health & Fitness

        California Business Journal | California Business News, California News Media, California business articles | Orange County, Los Angeles, San Diego, Inland Empire, Northern California, San Francisco | Huntington Beach CA 92649 | (949) 648-3815
        ALL RIGHTS RESERVED BY CALIFORNIA BUSINESS JOURNAL.
        Site Design by 1REALTOUR

        Do NOT follow this link or you will be banned from the site!