As California Real Estate Slows, L.A. Going StrongAugust 25, 2017
The Los Angeles real estate market continues to thrive as much of California shows signs of slowing, this from the summer/fall forecast of California Commercial Real Estate Survey from Allen Matkins/UCLA Anderson.
According to the forecast, Los Angeles is leading the state in real estate deals thanks in large part to Hollywood and Silicon Beach. With a thriving entertainment and tech industry respectively, these two neighborhoods are helping L.A. fight back the real estate slump expected in other places around the state.
Even with the constant development throughout the city, the real estate experts behind the survey pointed out that demand for office space and housing will still outpace the rate of development in the city, which will lead to a rise in both occupancy and rent rates through 2020.
That trend is not reflected elsewhere, with major markets in the state struggling to attract new residents and businesses, thanks to the skyrocketing price of rent.
Major Markets like San Diego and Orange County are projected to have a major slowdown in their real estate market.
Any real estate investment advisor will tell you that this means that is good news for investors. As demand and rent rates increase, investors will see a rise in their profits.
A real estate acquisition company that specializes in housing outside of the city center stands to benefit as well, as fewer rental opportunities drive potential residents further out from the city center.
Given the traffic in L.A., real estate that offers easy access to public transportation -- especially along the expanding the metro system -- will be of particular interest to renters. This bump in demand will have a similar, if smaller, effect on the small pockets of real estate closest to the subway access points: rent and occupancy rising.
That means that there has never been a better time to seek out real estate investment opportunities in Los Angeles. Whether you look for a turnkey opportunities or a traditional investment property, you can expect that the increased demand will help you see a profit -- or at least a positive cash flow -- sooner than you might have in the past.
If you are giving your investment portfolio a regular check up to determine its health, as experts recommend, then it might be time to consider adding more real estate assets.
Hubilu Venture Crop is a leading real estate acquisition company in Los Angeles, specializing in student housing opportunities and property along the LA Metro expansion. Contact us today for more information