Prospects for 2018
- Friday, 08 February 2019 01:58
And this will be a growing problem more broadly for potential investors in LA, with a lack of value add and diminishing core opportunities, says Bohlinger who says “the real challenge is going to be finding product.”
“As we’ve continued to see in the first quarter, there is an abundance of capital, but only a modest level of new offerings.”
Despite the supply constraints, and some record-setting prices (for example, the Westside’s record high price in some cases has exceeded US$1,200 per-square-foot), LA transaction volumes are likely to continue to grow at a moderate pace during the coming year – barring any sudden unexpected increase in interest rates.
“The potential for inflationary pressure caused by rising wages and record low unemployment pose a potential threat to economic growth,” notes Doupe. “Overall though, investors will continue to see LA as an attractive opportunity.”
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