For decades, Los Angeles has been considered one of the least desirable cities for investors in the commercial space. The Wall Street Journal event went as far as to describle DTLA as "a weak collection of office buildings with no pizazz." Either Los Angeles' reputation and infrastructure has changed or East Coast investors are desperately looking for a reason to make multiple trips seeking West Coast sun. New York firms have made sizable investments, $4.4 billion since the beginning of 2012 to be exact, which is the equivalent of buying 12 U.S. Bank Towers. "L.A. County has seen a 23% increase in the dollar volume of investment from the Empire State this year compared with 2013.
While this L.A. Times article focuses on commercial real estate, residential brokers are also feeling a new wave of wealth seeking investment properties in the form of development opportunities and income producing properties. In the foreign/global demographic, Eastern European buyers are snatching up large holdings likely due to current political and economic uncertainty. Domestically, many buyers from New York have come to call Los Angeles (second) home and/or have purchased a slew of residential properties for the aforementioned purposes. The latest market research shows the activity and continued growth in both commercial and residential markets of L.A. and is a very positive sign for the future of our market. It's also a great excuse to buy a beach house in Malibu or summer house in Beverly Hills. Afterall, who doesn't want a return on their investment + 90 degree November weather?