Los Angeles has moved to the number two spot for commercial real estate investment, according to a new report from JLL. The city has pushed New York into the third spot, while London has moved into the top place for commercial real estate investment. Last year, Los Angeles was in the number three spot, and in 2015, it held the number four spot.

“During the past three years, Los Angeles and Southern California overall has seen dramatic economic growth,” Dave Doupe, international director at JLL, tells GlobeSt.com. “Historically, Southern California was last in and first out of a recession but that was not the case during the Global Financial Crisis. The region's growth has been driving by media content and tech companies coming to Southern California from the Silicon Valley.”

While Los Angeles position is a sign of the strength of the market, it isn't necessarily a sign of a weakening New York market. “New York was coming off a record series of investment years,” explains Doupe. “Additionally much of the speculation investment from Russia and China was slowed due to currency controls.”