Los Angeles County Commercial Real Estate Update September 2021
How is the commercial real estate market in Los Angeles performing in 2021?
When someone asks, “ How is the real estate market?” The answer always depends on whose asking, which property type and by which metric. Overall, the Los Angeles commercial real estate market has been far more active than in 2020 in volume and transactions. Although we have not been seeing the same amount of activity and new buyers as the residential market, the investment community is active across all commercial property types.
Since January 1st of 2021, there has been over $23.4 Billion in commercial real estate transactions in Los Angeles county alone. To put it in perspective this is 34% more volume overall than 2020 during the same time period. Although the market volume hasn’t caught up to the $26B volume in 2019 over the same period, there has been more transactions this year in Los Angeles County among all commercial property types (5,488 in 2021 vs 5,180 in 2019).
Los Angeles Commercial Real Estate Stats:
5,488 Transactions - 23.4 Billion in Volume to date
Average Cap Rate across all Property types 4.5%
Average Sales Price Per Foot for all Property Types $327/SF
Commercial Real Estate Volume 2021 vs 2020 34.2%+
*Data and stats from CoStar Analytics.
Hopefully, the volume stays strong and there aren’t any market hiccups along the way. The federal reserve just released news that they will not be raising interest rates. The current low rates have been keeping the fire going. Let’s hope for the market to stay active and strong to finish out 2021.
