What’s new in the world of California CRE? Right now, the commercial real estate in general is in flux. And this is particularly true in the California market.
Technological shifts and evolving use patterns are changing the ways buildings are built and used and sold. The concept of the office has been forever altered with work-from-home becoming more and more prevalent. Without a doubt, CRE is rapidly changing.
In California, there is concern about a recent slowdown. Some are concerned about a CRE recession. The market has certainly cooled down from the bull market of previous years. But recent commercial deals show a lot of activity, some positive, some negative. The California CRE market is complex, and recent developments in sales and construction reflect this dynamic.
Below is a look at just some of the new activity, deals, and developments in commercial real estate for the California market.
California CRE News Roundup
- Intuitive Surgical, a medical device manufacturer, acquired properties in Santa Clara in late 2023 as part of a large plan to develop a 1.17-million-square-foot campus. This deal totaled $157 million.
- 99 Cents Only filed for bankruptcy in April, 2024. The liquidation will vacate 3.8 million square feet of retail space in Southern California.
- Marcus & Millichap closed a $27 million sale of The Abbey Food & Bar and The Chapel at The Abbey in West Hollywood last month. The iconic nightspots were sold to Tristan Schukraft, who intends to continue their legacy.
- Thousand Oaks neighborhood saw the sale of a 400-unit apartment and townhouse portfolio in December, 2023. The sale totaled $171 million.
- Disneyland received final approval from the city of Anaheim for a $1.9 billion expansion in April. This massive plan will include restaurants, hotels, and a complete redesign of the Disneyland theme park. This represents Disney’s largest investment in the attraction since the 1990s.
- Goodman, a global industrial property and digital infrastructure specialist has broken ground on their new Goodman Commerce Center. The 500,000-square-foot development is expected to be completed by the end of this year.
- The University of Southern California released their new Casden Real Estate Economic Forecast in Q4 of 2023, forecasting a 2-4% increase for apartment rents in all SoCal housing markets over the next two years.
- The Mission Rock Partners development team recently held the grand opening of China Basin Park. The 5-acre waterfront park is intended to be the new central gathering place and regional destination for the Mission Rock neighborhood.
- Disney announced in Q4 of last year that they will invest $60 billion in their theme parks and cruise business, an infusion of capital for their California operations as well as other locations.
- The California Supreme Court is set to hear arguments this week on the constitutionality of a ballot measure intended to reverse Los Angeles’ real estate transfer tax. Advocates argue that Measure ULA has significantly reduced multi-family sales.
- The Santa Ana Development, a shovel-ready property less than a mile from downtown Santa Ana, recently sold to a local investor for $1.16 million.
- Downtown’s The James recently sold for $74 million. The luxury apartment complex located in downtown San Jose was transferred at what is considered a bargain price.