REAL ESTATE NEWS (Los Angeles, CA) — Offices and businesses have been collapsing since March 2020, when the virus hysteria and government-forced lockdown began to close down a large percentage of business in California and some other states.
A lot of different markets at this point are giving us a good sense as to what’s going on, according to CNBC. Let’s start with rents, which seem to keep going up despite what we’re hearing about housing rates moving up and making it more or less affordable for buyers. The media is talking about rents being a component of inflation and how there’s nothing abating that upward tick in rents. It’s really a supply and demand issue. Apartment buildings across the country are full, thus able to push rents right now. Until we start to see more supply come online, it will continue.
Some believe that rents will maintain or continue to move higher. They’ll continue to go up. Many business people are calculations a north of 5% increase over the next year. We are told that, until we see that come down to the historic average of 2% to 3%, we’re not going to see that number abate. From an investor perspective and/or those lending, multifamily is the place to be right now. Apartments is a great place to be invested. One of the big reasons for that is Fannie and Freddie, which provide liquidity in that market. There isn’t such liquidity in other commercial real estate classes.
Fore more on the collapse of commercial real estate, take a look at this video from Wall Street Journal about Chinese companies getting the heck out of American commercial real estate.
In the near future, the loft blog will provide a larger article, along with an offer of search and sales services to help with commercial real estate in Downtown and the Greater Los Angeles Area. Get a free list of live/work industrial style residential loft condos for sale or for lease. Fill out the online form.
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