It’s a tale of two cities when it comes to the office market, with Los Angeles continuing to experience record high vacancy rates and a dismal outlook, while the Inland Empire boasts the nation’s lowest vacancy rate for office space among the 50 largest markets. It’s safe to say that the white-hot industrial land rush has cooled, as imports from Asia fall and interest rates continue to impact developers, investors, and potential purchasers. Higher interest rates and changing economic conditions continue to impact sales and growth; for most sectors (excluding LA’s office submarket), 2024 is likely to bring modest improvements. Slowing job growth and nerves about a recession, paired with increasing costs of living in most areas, has kept consumers wary and forecasts conservative.

In the following pages, we outline the major market trends in the Los Angeles and Inland Empire market sectors, along with key indicators. In today’s quickly changing environment, we remain ready to assist you with your commercial real estate valuation needs at any time.