Company News

In a shifting interest rate and opportunity landscape, Southern California’s real estate sector sits at the intersection of accelerated transformation and stubborn industry bottlenecks.

From deal-making to development, Jeremy Cramer, IDB Head of CA Commercial Real Estate, joined fellow industry leaders Craig Coan (Greenberg Glusker LLP), Kirk Malmrose (Cathay Bank) and Mal Serure (McDermott Will & Emery LLP) to share his thoughts on emerging trends, and where challenges may continue to persist, in the LA Times 2024 B2B Publishing 2024 Real Estate Outlook.   

“We anticipate Q4 2024 and Q1 2025 to present a unique window of opportunity for developers operating across certain submarkets and asset classes,” said Cramer. "Enthusiasm for Los Angeles CRE development in 2024 has been conspicuously anemic with a noticeable lull in active new building permits. Given the lack of new construction ground breaks, developers who are prepared to initiate projects in the short term can benefit from a high-supply/low-demand environment, gaining access to better subcontractors and a reduction in costs on the early trades.   

“These conditions become increasingly advantageous in a softening interest rate environment heading into the New Year. Weighing these factors and accounting for industry challenges, population density and changing use patterns in the L.A. market, we believe the highest areas of opportunity are across multi-family, industrial and retail asset classes with the office space continuing to present the greatest risk exposures.” 

Read the virtual roundtable published by LA Times B2B Publishing here.