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CBRE Releases Los Angeles Region Market Overview 2024
While hotel occupancy rates remained slightly off pre-pandemic levels, occupancy rates improved year-over-year. Both LAX (LA) and SNA (OC) airports saw a 14% annual increase in total passengers. For multifamily, rental growth will continue to stabilize in 2024 due to increased new supply levels.
The Greater Los Angeles, Orange County, and Inland Empire (GLA/OC/IE) region remained the second-most populated metro area in the U.S. at 18.4 million residents as of 2023. The region also supported a diverse industry base, most renowned for its dense clustering of motion picture and media firms.
Industrial vacancy increased, partly due to new deliveries sitting longer on the market. This will likely continue into 2024. While total container TEUs movement at the local ports decreased annually, port activity is expected to increase given forthcoming East Coast labor agreements in 2024.
The combined gross regional product ranked the region 14th globally in terms of country GDP, between Mexico and Brazil. Gross regional product and consumer spending continued to bolster the economy. Net migration turned positive in 2023 for the first time in nearly a decade.
Retail sales and consumer spending throughout the region remained high, with Los Angeles County alone accounting for roughly 5% of the nation’s total retail sales. E-commerce will continue to impact traditional brick-and-mortar retail, as seen with the recent closures in the big box category.
Office tenants continued to renew and/or right-size their space needs. As occupiers navigate the future of work, quality space with amenities will remain highly desirable. To address excess supply, office conversions remained limited and focused primarily on multifamily (GLA) and industrial (OC).
Top Trends:
Net migration turned positive in 2023 for the first time in nearly a decade. Gross regional product and consumer spending continued to bolster the economy.
Industrial and multifamily assets showed stable fundamentals, while retail and hospitality outperformed all sectors.
Office occupancy and utilization continued to lag as companies balanced hybrid work policies with employee engagement.
The Greater Los Angeles, Orange County, and Inland Empire (GLA/OC/IE) region remained the second-most populated metro area in the U.S. at 18.4 million residents as of 2023. The region also supported a diverse industry base, most renowned for its dense clustering of motion picture and media firms.
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