California Commercial Real Estate News Roundup 2020

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 Q1 2020

California’s Governor Outlines Plan to Open Up the State’s Economy

Gavin Newsome laid out the game plan for reopening California’s economy, and stated that “we must be guided by science and data.” After the citizens of California succeeded in flattening the curve, now’s the time to open up prudently and responsibly. Read More

 

Business Insider Covers the Impact of Covid-19 on the CRE Market

It was predictable to see that deals would fall through and tenants would have issues paying rent during the initial windfall of the pandemic. Business Insider covers some of the latest news nationwide with CRE during this challenging time. Read More

 

UCLA Study: Expect Contraction of California CRE Market Until 2022

A UCLA study investigating California’s commercial real estate market found that the trend of growth would contract a bit in the state for the next couple years.

Read More / Times of San Diego Article

 

California, One of the Least Vulnerable States to Coronavirus’ Economic Fallout

California’s dynamic, diversified economy makes it one of the more resilient economic markets in the world, and it is beneficial during the difficult times we face, as potential losses can be mitigated. Read More

 

Rexford Industrial Unleashes $200M+ in CRE Property Acquisitions

The commercial real estate company specializing in industrial real estate acquired a 10-building portfolio of warehouses and other industrial real estate properties around Southern California. Read More

 

Positive Sign for Malls in $3.6B Los Angeles Shopping Center Purchase

Simon Property Group’s pending acquisition of an 80% interest in Taubman Centers will give the former majority ownership of many high-quality malls around the USA. The deal illustrates that premier shopping centers are undervalued. Read More

 

California “Stay at Home Order” Will Test Many CRE Leases / Contracts

Tenants and landlords will adapt and react differently to the pandemic’s economic fallout, and more importantly will call to question the interpretation of contracts / responsibilities within the previously inked agreements. Read More

 

Predictions for the US’ Economy & CRE Market in the Wake of the Pandemic

Various CRE and economy experts weigh in on the impending economic wake that follows the pandemic. Read More

 

Los Angeles’ Industrial Real Estate Construction Up Nearly 90%

In 2020, 5.3 million square feet of industrial property will be delivered in Los Angeles, and another 26 million in the Inland Empire. This marks an increase of nearly 90% year-over-year. Read More

 

Los Angeles’ Art District is Expanding with 30+ Projects in the Works

Los Angeles’ commercial real estate expansion is not limited to industrial real estate, as the Art District has over 30 CRE projects in the pipeline. Read More

 

Acacia Capital Acquires Pleasanton Multifamily for $128

San Mateo-based Acacia Capital acquired Park Hacienda, a 540-unit apartment community in Pleasanton, CA for $248 million, which equals around $459,000 per unit. Read More

 

California Commercial Real Estate News Q4 2019

California commercial real estate news highlights in Q4 2019 include: California’s economic forecast in 2020, Los Angeles’ new megaproject, biotech booming in Southern California, and various CRE acquisitions throughout the state.

 

Beacon Economics Rolls Out California Economic Forecast for 2020

Beacon Economics, LLC releases research and guidance for California’s economy frequently. This year, they predict that the jobs market will continue to grow, as unemployment rates continue to reach historic lows; however, there will be pressure on the housing market vis-a-vis home prices and rental rates. Read More

 

CBRE Sees ‘Tempered Growth’ for Commercial Real Estate in 2020

CBRE foresees a continued expansion of the US economy in the beginning of the new decade. A few factors to keep in mind for this year are: the ongoing trade negotiations (tariffs, taxes, etc), a possible decline in manufacturing productivity, and the upcoming presidential election in November. Read More 

 

Venture Capital Bringing a Major Boost to Thousand Oaks’ Conejo Valley

Venture capital focusing on biotech firms in Los Angeles’ biggest hub for the industry is starting to launch its first major investments in the region. According to an interview for the story, it is this ingredient that was lacking in Southern California’s biotech industry in order to make it a possible contender with the Bay Area and Boston, for example. Read More

 

Chinese Developer, Greenland USA, Finished Major Metropolis Project in Downtown LA

Downtown Los Angeles has a newly completed metropolis megaproject in the books. After 5 years, Greenland USA, a Chinese developer finally finished the mixed-use megadevelopment, which totals 3.5M square feet. It is only a few blocks away from LA Live and the Staples Center. Read More

 

ASB Real Estate Investments Inks $100M Purchase

ASB Real Estate Investments acquired the Bloomington Logistics Center, a 677K square foot industrial property, in the Inland Empire. ASB purchased the industrial property using its Allegiance Real Estate Fund, which has a value of around $7.5 billion. Read More

 

In the Aftermath of the California Fires, Paradise Illustrates How to Be Resilient

The raging fires in California during 2019 were record breaking, and created massive amounts of damage. However, despite the destruction left behind, many people have shown resilience in rebuilding their assets and providing inspiration for how to face the burdens left by such events. Read More

 

JV Closes Loan to Begin Beverly Hills Project for $190M

ACORE Capital provided a $190M construction loan to joint venture: SHVO, Bilgili Group, and Deutsche Finance for the development of a 307K square foot mixed-use residential / retail development in Beverly Hills. The new project will be a “hot spot” in the area. Read More

 

Last Decade’s Recap of Los Angeles’ CRE Market

Following the recession in the late 2000s, the 2010s were a boom for commercial real estate investors and developers. In the words of an expert interviewed regarding Los Angeles’ CRE market in the 2010s, “we had no bad years.” Vacancy rates went down across all sectors, and there was plenty of activity moving into the new decade in 2020. Read More

 

Overseas Investors View USA as Top Destination for Investment Dollars

A strong economy and currency make the United States a favorable place for foreign investors to park and grow equity. This financial activity is expected to continue flowing in 2020 and throughout the upcoming decade. Read More

 

Goleta’s Office Vacancy Falls Below Santa Barbara’s

In Santa Barbara’s commercial real estate, one of the major stories was demand for office space in Goleta. Goleta led the way for markets in the South Coast this past year. Read More  

 

Rent Cap Law in Santa Barbara Not Received Favorably

There are a variety of opinions regarding the new implementation of a rent cap law in Santa Barbara. However, Laura Bode, executive for the Rental Property Association in Santa Barbara, said “California’s new rent-cap law is not as alarming as the recently passed just-cause eviction provisions.”  Read More

 

L.A. Times Print Production Facility Sold for $240M

New York-based Atlas Capital Group purchased the 26-acre site on Olympic Boulevard for $240 million. Atlas Capital Group is known for building large-scale mixed-use developments in Los Angeles and throughout the United States. Read More

 

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.
Read More

 

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.
Read More

 

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.
Read More 

 

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.
Read More 

 

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.
Read More

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.
Read More

 

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.
Read More

 

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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