Newly inked market research tells us that the U.S. commercial real estate market is growing at a slow, but optimistic pace. Experts say that leveraging new trends, responding to wide scale shifts in demographics and adapting to regulatory change are among the top demands investors are faced with today. And while it may seem like an uphill battle, no one seems to be hitting the breaks.
National market trends indicate that increased employment rates and steady growth in the nation’s Gross Domestic Product (GDP) are boosting consumer confidence. As a result, more people are spending money and driving lucrative commercial deals in locations throughout the nation.
Of course, not all cities are the same. Just look at Chicago, for example. Late in 2016, Realtor.com ranked Glendale as the coldest real estate market among the top 100 metropolitan areas in the U.S., largely due to its high unemployment rates and low income growth, among other things. Compare that to the state of California, where three of its metros made it into the top ten.
In fact, the commercial market in southern California, in particular, is booming, according to a report from Coldwell Banker Commercial released in April. An uptick in land sales, downturns in vacancy rates and robust activity in industrial areas have proven widely successful for the industry.
Specific to Glendale, CA, the report goes on to explain that despite some corporate losses early in the year (like Nestle USA transferring its corporate headquarters from Glendale to Virginia, resulting in a loss of 1,200 jobs), the city is doing just fine, if not better than most.
Currently the unemployment rate in Glendale sits at 5.3 percent and the median household income is $62,544, according to the report. Commercial property is priced at $200 per square foot and the vacancy rate sits at 7.9 percent with the exception of office space, which sits at 16.6 percent. According to the report, multiple mix-use development projects are well underway are located in the heart of downtown.
Did you know?
The annual Rose Bowl and Rose Parade attract a million people to Glendale and Pasadena each year. The event rakes in an estimated $32 million for the region.
Here’s a quick rundown on the health of the commercial market as of June 2016, compiled by LoopNet:
Multifamily in Glendale, CA
Trends indicate a -1.1 percent decrease in the median asking price as compared to the three months prior to the report being released; over the last year, the report detailed a -5.9 percent overall decrease. In the county, asking prices are .5 percent higher in comparison to the median price in Glendale, which is $294,654 per unit.
Office in Glendale, CA
The average asking rental rate sat at $28.56 per square foot per year, which is a decrease of -2.4 percent compared to three months prior to the report being released. In a year span, the average increased by .9 percent. Rates are 1.7 percent higher than the county, which sit at $26.25 per square foot per year.
Industrial in Glendale, CA
The report details no changes in the median asking price per square foot in comparison to three months prior to the release of the report. The current price per square foot is $175, which is -3.9 percent lower than the county, which charges an average $195.
Retail in Glendale, CA
The average rental rate per square foot per year is $35.76, which is -.3 percent down from the three months prior of the release of the report. Over a one-year period, the price increased 23.4 percent. Average rental rates in Glendale nearly equate that of the county.