Los Angeles Q1 2020 Market Report
Sustained commercial real estate activity carried over into the first part of Q1, 2020. TAMI (technology, advertising, media, and information) type companies continued to be the backbone of leasing activity supplemented by the government and healthcare sectors. Commercial real estate fundamentals will be monitored as economic uncertainty associated with COVID-19 sets in. A rise in vacancy (including a rise in the amount of sublease space) is expected in the coming months as transactions are being put on hold and occupiers start to re-think how commercial real estate will be utilized moving forward. The coworking industry, which was one of the most active sectors vying for space, will likely see a dramatic shift in its growth strategy. A sharp decline in commercial real estate activity will be prevalent through Q2, 2020 as the world continues to monitor the unchartered waters the economy has entered into.