flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Survey: Job growth driving demand for office and industrial real estate in Southern California

Survey: Job growth driving demand for office and industrial real estate in Southern California

Annual USC Lusk Center for Real Estate forecast reveals signs of slow market recovery.


By By BD+C Staff | December 19, 2011
The 10th Annual Casden Southern California Industrial and Office Forecast reveals that all three areas experienced job growth a

The University of Southern California Lusk Center for Real Estate’s annual analysis of industrial and office real estate in Los Angeles County, Orange County and the Inland Empire shows signs of a slow market recovery.

The 10th Annual Casden Southern California Industrial and Office Forecast reveals that all three areas experienced job growth and increased demand for both property types in 2011. An analysis of each area’s submarkets found lower vacancy rates in 11 of 17 office submarkets and 11 of 14 industrial submarkets. On the rent side, four office submarkets and eight industrial submarkets experienced increases. Overall, declines were smaller than in the previous two years. 

“Although Southern California is a long way from pre-crisis levels of economic health, the improved employment picture and profound turnaround in the industrial market are signs of a slow recovery,” said study author Tracey Seslen. “The office market is only slightly improved over last year and vacancy rates may continue to fall for many months before we see rents stabilize.”  

 As a result, while office demand is expected to grow over the next two years, office rents were down for the third straight year and will continue to decline. On the industrial side, all three markets are expected to see ongoing declines in vacancies and increases in rents over the next two years.

In particular, the Inland Empire’s industrial market – the top performer in 2011 with a 6.4% increase in rents and nearly 17 million square feet of net absorption – is expected to see more growth in the next two years, but the magnitude will depend on rail and port activity.

“Sovereign risk in Europe, geopolitical turmoil and the growing U.S. debt crisis are undermining consumer confidence. Port and rail traffic, particularly activity at the Port of Long Beach, is down and could hinder the positive outlook for industrial rents,” Seslen said. BD+C

Related Stories

Regulations | May 8, 2023

Supreme Court case likely to have huge impact on Clean Water Act

A case before the Supreme Court will likely determine how the Clean Water Act is interpreted and the ruling could open up new areas for development within or adjacent to wetlands.

Senior Living Design | May 8, 2023

Seattle senior living community aims to be world’s first to achieve Living Building Challenge designation

Aegis Living Lake Union in Seattle is the world’s first assisted living community designed to meet the rigorous Living Building Challenge certification. Completed in 2022, the Ankrom Moisan-designed, 70,000 sf-building is fully electrified. All commercial dryers, domestic hot water, and kitchen equipment are powered by electricity in lieu of gas, which reduces the facility’s carbon footprint.

Multifamily Housing | May 8, 2023

The average multifamily rent was $1,709 in April 2023, up for the second straight month

Despite economic headwinds, the multifamily housing market continues to demonstrate resilience, according to a new Yardi Matrix report. 

University Buildings | May 5, 2023

New health sciences center at St. John’s University will feature geothermal heating, cooling

The recently topped off St. Vincent Health Sciences Center at St. John’s University in New York City will feature impressive green features including geothermal heating and cooling along with an array of rooftop solar panels. The geothermal field consists of 66 wells drilled 499 feet below ground which will help to heat and cool the 70,000 sf structure.

Office Buildings | May 4, 2023

In Southern California, a former industrial zone continues to revitalize with an award-winning office property

In Culver City, Calif., Del Amo Construction, a construction company based in Southern California, has completed the adaptive reuse of 3516 Schaefer St, a new office property. 3516 Schaefer is located in Culver City’s redeveloped Hayden Tract neighborhood, a former industrial zone that has become a technology and corporate hub.

Mass Timber | May 3, 2023

Gensler-designed mid-rise will be Houston’s first mass timber commercial office building

A Houston project plans to achieve two firsts: the city’s first mass timber commercial office project, and the state of Texas’s first commercial office building targeting net zero energy operational carbon upon completion next year. Framework @ Block 10 is owned and managed by Hicks Ventures, a Houston-based development company.

Market Data | May 2, 2023

Nonresidential construction spending up 0.7% in March 2023 versus previous month

National nonresidential construction spending increased by 0.7% in March, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $997.1 billion for the month.

Life of an Architect Podcast | May 2, 2023

Life of an Architect Podcast Ep. 124: Show Me the Money

I get asked a lot about how much money an architect makes. Without understanding a few parameters, that’s like trying to buy a car by the pound. I spend a fair amount of my time discussing the architectural marketplace, where we can find value, what’s the going salary rate based on skill set and experience, and how badly we need this spot or that spot filled.

Hotel Facilities | May 2, 2023

U.S. hotel construction up 9% in the first quarter of 2023, led by Marriott and Hilton

In the latest United States Construction Pipeline Trend Report from Lodging Econometrics (LE), analysts report that construction pipeline projects in the U.S. continue to increase, standing at 5,545 projects/658,207 rooms at the close of Q1 2023. Up 9% by both projects and rooms year-over-year (YOY); project totals at Q1 ‘23 are just 338 projects, or 5.7%, behind the all-time high of 5,883 projects recorded in Q2 2008.

Architects | May 1, 2023

HOK names Eli Hoisington and Susan Klumpp Williams as Co-CEOs

HOK has appointed Eli Hoisington, AIA, LEED AP, and Susan Klumpp Williams, AIA, LEED AP, as its new co-chief executive officers, succeeding Bill Hellmuth, FAIA, LEED AP, who passed away on April 6, shortly after his scheduled retirement.

boombox1
boombox2
native1

More In Category


Urban Planning

Bridging the gap: How early architect involvement can revolutionize a city’s capital improvement plans

Capital Improvement Plans (CIPs) typically span three to five years and outline future city projects and their costs. While they set the stage, the design and construction of these projects often extend beyond the CIP window, leading to a disconnect between the initial budget and evolving project scope. This can result in financial shortfalls, forcing cities to cut back on critical project features.



Libraries

Reasons to reinvent the Midcentury academic library

DLR Group's Interior Design Leader Gretchen Holy, Assoc. IIDA, shares the idea that a designer's responsibility to embrace a library’s history, respect its past, and create an environment that will serve student populations for the next 100 years.

halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021