Los Angeles

New construction in Los Angeles began to soften in 2019, after hitting peak levels in 2017 and 2018. According to a recent report from JLL, Los Angeles continues to be a top market for commercial construction. It is ranked fourth in the nation, with 2.3 million square feet currently under construction. Interior repositioning projects, on the other hand, have continued to maintain momentum through the year, thanks in large part to demand and leasing activity from media companies.

"Interior improvement projects for commercial office space, hospitality and repositioning of buildings continue to keep the momentum that was picked up in 2018," Anu Rao, VP and Los Angeles market lead of project and development services at JLL, tells GlobeSt.com. "The key players in the commercial interior requirement are the media companies like Netflix, Amazon, Apple, HBO being some of the biggest players in the market."

This sector is expected to continue to grow next year; however, there will be a shift in the top submarkets. "The continued growth of the media sector will keep the tenant improvement sector busy throughout 2020 along with standard office lease renewals fueled by higher tenant improvement allowances," says Rao. "From geography perspective, we are seeing the sub markets that were born in 2017/2018 in Hollywood, Culver city, Downtown Arts district and West L.A., are reaching their peak demand and tenants are moving towards Burbank and El Segundo."