The industrial sector rated highest among all property types in the West region of the US for its value vs. price while retail sector fared the worst in that category. For return vs. risk, the apartment sector ranked highest while the hotel sector was in last place among the property types. That’s according to a survey of regional correspondents conducted for the 4Q 2018 Situs RERC Real Estate Report, “Staying on Track.”
Here’s a closer look at some of the major metro areas in the West:
Los Angeles’ unemployment rate was 4.7% in 2018, above the national average of 3.9%. The metro’s employment grew 1.3% over the last 12 months, adding 56,846 jobs in 2018.
Industrial continues to be the darling of CRE in Southern California, including Los Angeles. The growth in e-commerce has been a boon for the Port of Los Angeles. However, the rising cost of building in the metro will continue to be an issue in coming years.
Seattle’s employment grew 3.4% over the last 12 months, adding 69,637 jobs in 2018. At 3.5%, its unemployment rate is below the national average of 3.9%.
Tech jobs have fueled the Seattle economy and the Seattle CRE market. However, those tech jobs are at risk of moving to other tech-driven cities, especially as Seattle is dealing with a lack of affordable housing.
Denver is one of the hottest markets in the nation, with the metro’s employment growing 2% over the last 12 months. The metro added 29,954 jobs in 2018. At 3.1%, Denver’s unemployment rate is well below the national average of 3.9%.
Denver’s industrial market is expected to continue to excel in 2019. The Central Corridor and the North East Side markets have the highest demand, and the metro enjoys diversity in terms of the users who lease the industrial space.
In future Newswatches, we’ll look at the Situs RERC survey results for the Midwest, South and East regions of the US.
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