Los Angeles is not that different from other cities in terms of real estate. It has an inner downtown core with a concentration of commercial property and office buildings. It also has a wide stretch of industrial property as well for both logistics and manufacturing. And, in the outer areas, it has a combination of high-density and regular-density residential property as well, especially as one expands outward from the City center. Given the fact that Los Angeles is one of the largest cities in the U.S., that outward band of properties is significant, and it has a very large mix of both residential, mid-level and low-level commercial properties as well with a good number of retail addresses.
Lots of Change Occurring From Societal Movement
2020 was a landmark year in the changing nature of property use, particularly on the business side of things. Thanks to the pandemic, the nature and use of commercial property really came into question as to what was necessary to run a business versus what was not. The result was a significant vacating of property and a shift to remote work. Obviously, much of that has been reversed, primarily due to demands by company management and the need to keep owned commercial property useful. One can debate back and forth about the efficacy of holding onto old business models about property, but no one can argue the last three years have fundamentally reshaped the LA real estate market.
Steven Taylor Los Angeles resources see a key factor in the real estate shift being the re-purposing of property, particularly from business to residential, to address significant housing needs in the LA basin. It’s an ideal win-win solution due to the fact that property not realizing usage from a business perspective gets full utilization once converted to housing.
Expect More Settling
Change is a good thing, Steven Taylor LA believes, even if it seems unpredictable and forces constant shifting. In reality, it brings in new elements, a revitalization of markets that have been stagnating, and it brings in new investment types. Real estate markets that stay the same decade after decade end up typically leading to problems of slumping demand, low maintenance, and eventually dropping property values as demand moves on to other locations that are more attractive.
However, Los Angeles continues to exhibit a re-use approach that is fundamentally reshaping its own landscape again and again. And that provides investors who are willing to entertain multiple purpose opportunities with lots of ways to enter, sell, make profits and produce new aspects of LA no one expected 20 years ago.
