Colliers’ Cody Cannon Previews Connect Los Angeles

By Dennis Kaiser

Connect Los Angeles is coming up this Thursday (March 21st) at the Hotel Indigo Downtown Los Angeles. The planned line-up includes five deep dives into the opportunities and challenges across asset classes, the future of work, financing today’s deals, legislation and the economy. Leading up to the conference we asked Colliers International’s Cody Cannon to share his thoughts about the commercial real estate market in our latest 3 CRE Q&A.

Q: What economic impacts on the commercial real estate industry should we watch out for in 2019?
A: Effects that the economy may have on the real estate industry this year really vary by property type. Industrial product, for example, may be most impacted by the way we see ongoing trade disputes pan out, as well as concerns over the potential for another government shutdown. Office and retail, on the other hand, tend to be more susceptible to swings in the overall economy, which is expected to soften in the next few years. As for multifamily and healthcare, both undeniably benefit from a population that continues to not only grow here in Los Angeles, but also age, though it will be interesting to see how demand for affordable housing and mega-mergers in the healthcare world will make an impact.

Q: What are some of the trends you’ve been tracking in the Los Angeles market?
A: Some of the commercial real estate trends that I’ve been interested to see so far this year include the incredible demand from new media and technologies companies, even beyond Hollywood and Silicon Beach but throughout the Los Angeles area; the persistence of coworking space, not only in traditional office settings but as a revitalizing force in retail environments; the massive impact of e-commerce and last-mile distribution on both industrial and retail; as well as the still unknown effect of Opportunity Zones on local real estate dynamics.

Q: What are the hottest investment property types in the region right now?
A: Industrial product, without a doubt, continues to be the single most sought-after property type in the Greater Los Angeles market, even despite potential headwinds of trade negotiations, fluctuations in capital markets and general government uncertainty. It’s buoyed not only by the growth and demand of e-commerce, but also by the strong position of the Southern California market, both domestically and internationally. Meanwhile, multifamily product has also proven a popular choice for investors, as housing demand continues to outpace supply in the region. Though office, retail and healthcare likewise continue to draw investment interest, those assets are not quite as hot.

For comments, questions or concerns, please contact Dennis Kaiser