CPN - September 2008 - (Page 12) MARKET INTELLIGENCE LOS ANGELES Core Strength Los Angeles Perseveres, but Tenants Proceed with Caution By Eugene Gilligan C ommercial leasing and investment are far from crawling in Los Angeles. “Things are slower, but there’s still an awful lot of activity,” said Charles Dunn Co. senior managing director Eugene Page.“There is a long list of transactions.” Whether the market’s dance card will remain full is up in the air, though, as the local economy does show signs of weakness. According to figures that the California Employment Development Department released in the middle of July, unemployment in the Los Angeles-Long Beach metropolitan area increased during June from 6.7 percent to 7 percent, the highest rate since November 2003. Concern about labor talks between the International Longshore and Warehouse Union and the Pacific Maritime Association have proved unfounded. But the uncertainties of global politics, the U.S. pres- to stay in their space, they will stay,” said Kim (Los Angeles office fundamentals, second quarter 2008) Snyder, senior vice presiAbsorbed Direct Full-Service dent & managing direcYear-to-Date Vacancy Rental Rates tor of the Southwest CBD 0.18% 12.49% $35.34 region for AMB Property Suburban -0.78% 9.83% $36.56 Corp., which owns 20 Total -0.57% 10.39% $36.04 million square feet of Source: Jones Lang LaSalle Inc. industrial space in Los Angeles County. Watson Los Angeles’ diverse base of Land Co. vice president of marcompanies has kept tenant activity keting and leasing Lance Ryan relatively strong. Broadreach agreed that the pace has slowed. Capital Partners bought Hollywood’s CNN Building in 2006 “It is taking a longer time to put and spent $38 million to refurbish deals together on both sales and it to attract higher-paying tenants. leasing,” he said. Those companies that are idential election and spiraling moving are increasingly favoring gas prices continue to loom. warehouse space near the ports For now, occupants are stay- of Los Angeles and Long Beach, ing put if they can. “We’re see- particularly in the South Bay ing a hesitancy among many submarket. Despite the Inland tenants to make a decision. If Empire’s lower rents, higher gas tenants have the opportunity prices make distribution centers BEHIND THE SCENES Your real estate deserves real management. Count on a CPM® professional to deliver real results. CPM ® For expert management of your real estate portfolio, turn to a professional who has earned the CERTIFIED PROPERTY MANAGER® (CPM®) designation. A CPM® has: • Demonstrated experience in building value • Pledged commitment to the highest ethical standards • Proven expertise in maximizing returns Or, contact us at: IREM Headquarters 430 North Michigan Avenue, Chicago, Illinois 60611 Phone: (800) 837-0706 (312) 329-6000 Fax: (312) 338-4736 E-mail: custserv@irem.org Entrust your investments to the best in the business. Partner with a CPM®. To find a CPM® in your area, visit www.irem.org/CPM 12 Commercial Property News • September 2008 • www.cpnonline.com http://www.irem.org/CPM http://www.cpnonline.com
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