Q4 2022 Market Trends Newsletter

March 7, 2023

The fourth quarter of 2022 saw the Southern California economy return mixed results across commercial real estate. The Inland Empire retained its status as one of the largest and fastest- growing logistics hubs in the United States, while recovery for the Los Angeles economy continued to be uneven, with certain sectors thriving more than others.

Jobs in transportation and warehousing within the Inland Empire have consistently grown for over a decade, and now account for 75% of job growth since the pre-pandemic era. Recent economic gains in Los Angeles have outpaced nationwide averages, and the unemployment rate has seen significant reduction, nearing a return to pre-pandemic levels. Meanwhile, Los Angeles’ position as a high-profile entertainment hub combined with the increased demand for streaming services and social media has benefited the L.A. economy. Prohibitive housing costs in L.A. persist as a major impediment to hiring, and serves as motivation for companies and workers to relocate in a hybrid environment.

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.

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