Los Angeles Market Report
Hard Hit by Health Crisis, Los Angeles County Navigates Transitional Period for Commercial Real Estate; Metro’s Standing as Regional Logistics Hub Preserves Industrial Deal Flow
Span of strong commercial performance interrupted by wave of job losses and prolonged COVID-19 restrictions. Shelter-in-place orders and nonessential business closures that extended through the second quarter had a profound impact on Los Angeles County’s economy. During March and April, nearly 727,000 jobs were shed, raising the local unemployment rate to a national high. While the county replenished 193,000 positions during the subsequent two months, the metro added just 40,000 jobs during the third quarter, with businesses’ ability to bolster staffs hindered by capacity restrictions and subdued tourism. Stagnant employment growth during August and September and stringent reopening guidelines point to a longer economic recovery for the metro that will potentially disrupt demand across property types.