CITYWIDE ‚Äî¬†Los Angeles-area investors might still be leery about the future of California‚Äôs economy, but when it comes to Santa Monica real estate, they are bullish, according to a poll released by Morgan Stanley.
L.A. beach cities and the South Bay real estate market ranked the most attractive by far, the poll showed, with more than a third of investors expecting real estate to take off.
Much of that has to do with the location and the blossoming tech sector that has called Santa Monica home, helping the city by the sea earn the moniker Silicon Beach.
“Local investors continue to be enamored with our rapidly growing tech sector, and they seem to see a great deal of promise in real estate, especially in the beach cities where the local tech sector is flourishing,” said Jeff Adams, Morgan Stanley Wealth Management‚Äôs Southern California regional director.
Vacancy rates in Santa Monica for creative office space hover around 6 percent, real estate experts say, which is only driving up rents. That could force tenants to look elsewhere, including the South Bay and Downtown Los Angeles.