California Commercial Real Estate News Roundup 2019

We put together a list of transactions, lease highlights, and development projects around California’s commercial real estate market. The list also covers financial factors that are important for property owners and investors to know.

California Commercial Real Estate News Q3 2019

California commercial real estate news highlights in Q3 2019 include: tech and media aiding commercial real estate, Blackstone’s increased presence in industrial real estate, major acquisitions throughout the state, and the new rent control law.

 

While Tech and Media are Booming, Commercial Real Estate Shows Little Fear of Impending Recession

BisNow illustrates the growth of Netflix during the last decade as an example of the potential for CRE in the tech and media sectors of California. The metrics of property deliveries, vacancy rates, and asking rates for commercial real estate spaces have been favorable and show that demand will hold for the foreseeable future.
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Will the New Rent Control Law, AB141482, Impact Southern California Multifamily Investments?

GlobeSt covers the potential impact of AB1482 on the multifamily real estate market in Southern California. The law cap annual apartment rent increases at 5%, and it passed despite major contention from industry leaders. 
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Blackstone Set to Buy Industrial Real Estate Assets from Colony for $6 Billion

Blackstone Group agrees to purchase warehouse properties from Colony Industrial for $5.9 billion. This is part of the equity firm’s plan to obtain and expand its presence in e-commerce throughout the United States. The warehouses are located throughout the country, but are most concentrated in: Dallas, Atlanta, Florida, New Jersey, and California.
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California’s Major CRE Markets Among the Best for Flexible Office Space in The U.S.A.

Los Angeles and San Francisco are among the top markets for flexible office space real estate in the United States. Other top markets include: Manhattan, Boston, Chicago, Atlanta, Washington D.C., and Seattle.
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What Are the Primary Factors Causing the Waiting List for Los Angeles Industrial Real Estate?

BizJournals highlights some tips to get ahead in the very sought after and competitive industrial real estate market in Los Angeles. They go through these possible strategies: 1) existing relationships, 2) efficiencies, 3) considering alternative locations, and 4) starting to look for properties early.
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San Francisco Leads the Pack for Global Price Growth Rankings in Real Estate, LA #4

San Francisco was heads and shoulders above the rest of the markets with commercial real estate prices rising 14.6% year-over-year in Q2 2019. The two cities between SF and Los Angeles in the list are Amsterdam and Boston, making the United States a clear leader in CRE price growth once again.
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REIT Seals the Deal on 5 Properties for a Total of $123M in Acquisitions & Sales

Rexford Industrial Realty Inc. (REIT) increased its presence in Souther California with the acquisition of 5 properties totaling nearly 500K square feet. The properties were purchased for a total of $110.3 million. Additionally, they sold two other CRE assets for $12.8 million.
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City of Long Beach Approves Bridge Point Project

The green light marks the next step for the continued revitalization of the Artesia Boulevard corridor in North Long Beach. The project will be built with a sustainable 416K square-foot industrial facility and 21K square feet for office spaces.
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Rams & Chargers’ Hollywood Park Development Obtains First 3 Tenants

The first 3 retail tenants on deck for the massive NFL stadium / retail commercial real estate property will provide food, movies (entertainment), and fitness. So far the Hollywood Park development acquired Cinépolis, Olympix Fitness, and Inglewood’s Three Weavers Brewing Co.
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Onni Group Inks $550M Loan for Miracle Mile Property in Los Angeles

Canadian-based Onni Group seals a $550 million loan in order to purchase 2-building office campus on Miracle Mile in LA. The property will be acquired for a total of $630 million from Tishman Speyer. It’s a Class A, 6-story LEED Gold-certified building.
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California Commercial Real Estate News Q2 2019

California commercial real estate news highlights in Q2 2019 include: California’s growing commercial property sector, coworking spaces acquiring more market share in the office real estate sector, grocery stores adapting to new age retail trends, and Sacramento getting a facelift.

 

California’s Growing Commercial Property Sector Highlighted by North Bay Warehouse Construction Projects

Within a short amount of time, a few million square feet of warehouse and other industrial commercial real estate spaces have been built or are in progress in the North Bay area. These projects are a sign of the growing CRE sector in California and highlights California’s presence on a national scale for the industry.
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Disney’s Marvel & Superhero-Themed Land in the Works

Riding the wave of recent success from their Marvel franchise, Disney is looking to capitalize on the fanfare with a special theme park. Disney is currently in the works with a Star Wars land, so it is no surprise that they are adding to their arsenal of family entertainment.
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A Peek Inside Apple’s “Earthquake-Ready” Headquarters

Apple recently completed their spaceship-inspired headquarters in Silicon Valley; however, one of the little known facts about the building is that it is “earthquake-ready”. It is apparently one of the few Silicon Valley buildings that is built with seismic protection technology in the area.
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Longfellow Real Estate Partners Bolsters San Diego Portfolio with Purchase of Sorrento Valley Property

Longfellow acquired Sycamore Creek Research Park for $26.7 million. The campus is 86K+ square feet and is currently 70% occupied. Sorrento Valley is San Diego’s tech / biotech hub located right off the I-5 linking the city directly to its northern neighbor Los Angeles all the way to San Francisco and Seattle in the Pacific Northwest.
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Canadian Developer, Onni Group, Receives $550M Loan to Acquire 1M SF Office Campus in Miracle Mile, Los Angeles

The Vancouver-based real estate developer just acquired $550M loan from Natixis to purchase the Wilshire Courtyard in the Miracle Mile neighborhood of Los Angeles. The 1 million square foot office campus is currently for sale by Tishman Speyer for $630M.
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The Golden State Is Gearing Up for Major Building Spree

Supported by a state budget that is fiscally thriving, the California state government is getting ready to unleash $1 billion on new projects in the state’s capital. The goal is to refurbish and replace outdated buildings in Sacramento.
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Coworking Continues to Occupy Greater Share of Office Market

Absorption and vacancy rates have trended in positive directions for the last decade for offices in California. One of the major market disruptors with co-working, WeWork, is responsible for a significant influence in these trends. It is estimated that WeWork has accounted for 15% of absorption in San Francisco alone, and 9% in Los Angeles as well as 5% in San Diego, respectively.
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LA County Office Tower Purchased by TA Realty for $139M

The 340,000 square foot building recently sold to TA Realty prior to Northrop Grumman’s lease expiration. They were the sole tenant of the building.
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Grocery Stores Evolving to Provide More Tech & Smaller Retail Locations

The shift in the retail industry due to e-commerce (Amazon, et all) forced traditional grocery stores to make changes to their operations. Grocers are adapting by becoming more nimble and up-t0-date.
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Netflix Set to Occupy Even More Office Space in Los Angeles

The online streaming giant inked leases for two new spaces near their headquarters in Los Angeles. The deals add another 170,000 square feet to their presence in Southern California, making a total presence of nearly 1.3 million square feet.
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California CRE News Q1 2019

This quarter’s California commercial real estate news highlights include: consumer confidence rising in The Golden State, SF & LA office markets ranking worldwide, how climate change could affect properties on California’s coastline, and major leases around the state.

 

Consumer Confidence Rises in California Contrary to the National Sentiment

California continues to be a healthy choice for investments and fiscal opportunities, especially when it comes to commercial real estate. Connect covers the key points of how the consumer confidence is rising in The Golden State compared to the overall sentiment nationwide.
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The President Plans to Cancel $1 Billion Funding for Bullet Train in California

The highly contested railroad project connecting Los Angeles to San Francisco hit another speed bump. President Trump and the US Department of Transportation are pulling back on funding for the major high-speed train set to connect Southern and Northern California.
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San Francisco & Los Angeles in Top-30 Most Expensive Office Markets Worldwide

The most recent Global Outlook Report by Knight Frank covers past and present rates for office spaces in major cities around the world. Hong Kong tops the list with a plethora of other cities around the globe representing the most expensive office commercial real estate markets.
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$150 Billion of Real Estate on California’s Coastline at Risk Due to Climate Change

Recent research released by the US Geological Survey (USGS) suggests that over $1 trillion of property is at risk due to rising sea levels and other climactic changes in the coming years. California possesses a massive amount of such properties due to its coastline. Understanding the risks is the best way to protect your assets.
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How One Real Estate Investment Firm Evolved the Market in Hollywood

Hudson Pacific, the largest independent owner of studio spaces in the United Space is celebrating its 100-year anniversary. Here’s a look back at how it influenced the real estate market in and around Hollywood.
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Credit Karma Signs One of the Largest Leases in Oakland Over the Last Few Years

San Francisco-based financial tech company, Credit Karma, signs lease for an office building with 106K square feet. The company currently has over 1,000 employees and is using this move as an opportunity to expand and grow.
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Google Set to Replace Macy’s & Nordstrom in LA Mall

The Silicon Valley-based tech giant is set to occupy a former 584K square foot shopping mall and turn it into a creative office campus for its operations.
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National CRE News: 4 Ways the Federal Tax Cuts Affect CRE Investors

While the overall effect of the new tax laws that started in 2018 is hard to predict, there are some major benefits that can be capitalized on initially for commercial real estate owners and investors alike.
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