Investors are going to town
- Friday, 08 February 2019 01:58
All of which is acting as a powerful lure for investors. “The industry mix affords more protection against volatile economic swings, providing more stable investment opportunities,” explains Doupe. “Transit and infrastructure developments are also supporting sustainable growth, which is another attractive quality for investors.”
Sovereign wealth funds
– which typically access the market through joint venture partnerships with local operators to leverage their local market knowledge – have been especially active in targeting large core and core plus investments. Meanwhile, value-add equity and debt fund strategies represented over half the funds raised in 2017.
Investor activity has been broad-based, reflecting the city’s economic diversity. The industrial sector, which has been a powerhouse across the country, made up 30 percent of flows in 2017, with retail accounting for 17 percent and hotels six percent.
“The rise of ecommerce is driving demand for distributors throughout LA and the Inland Empire, and investment activity is following suit,” notes Doupe.
While office investment was strong in 2017, seeing 47 percent of the total flows, “there was a lack of office opportunities for the amount of capital hunting for properties,” he adds.