California, West Coast Commercial Real Estate Market Improving
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Commercial Real Estate on Wednesday, September 12, 2012.
Information from the latest CoStar Commercial Repeat Sale Indices (CCRSI) report indicates that the West Coast appears to be edging toward a commercial real estate recovery. The West has been considered by some to have been especially battered by the tough economy. Technology and energy-based commercial real estate markets in California, Texas and several other states have helped shore up the nation's overall office rental market over the past two years. Now, that recovery seems to be expanding.
Recent data shows that other commercial property areas are experiencing an improvement, including the multifamily and retail sectors, and even the hard-hit construction market. According to that CCRSI report, the West Coast showed the strongest growth in pricing gains among the four major geographic areas of the U.S. The multifamily and retail property areas showed especially impressive price increases which pushed the West Coast commercial real estate market ahead of the Northeast region.
While the market has been rough for individual homeowners and those who have suffered job losses, this could actually account for part of the surge in the multifamily and retail sectors. The West Coast seems to enjoy an ever-increasing population. Those who have lost their homes due to foreclosure must logically rent or lease new living quarters.
Some parts of California and the West Coast have a distinct lack of affordable, lower-priced homes and rental units available for cost-conscious consumers. This has contributed to an uptick in the area's construction industry activity, undoubtedly welcome news for many. It may be an excellent time for commercial real estate investors to look into such opportunities now that the economic tide appears to be turning.
Source: CoStar Group, "Go West, Young Investor: West Coast Begins to Ride Tall In CRE Recovery," Randyl Drummer, Sept. 5, 2012