Commercial building set for boom due to apartment demand

Commercial construction is set to take off.

The commercial real estate industry in the United States may be on the verge of a spike in construction, which could help property management companies improve their overall standing in the market, according to the Los Angeles Times.

The construction increase is due to a heightened demand in apartment complexes, and this will not only help improve the currently low inventory levels, but also help improve economic conditions. The news source referenced a statistic from commercial real estate brokerage Marcus & Milichap, which noted 6,600 apartments, as well as 2.4 million square feet of commercial real estate space will be developed in Los Angeles County alone, this year.

"We're finally coming out of our bunkers," Wayne Ratkovich, a Los Angeles developer, said regarding the construction industry, according to the news source. "People are tired of being down in the dumps and are starting to look for opportunities."

In addition, California has experienced an improvement in apartment demand in the southern parts of the state, the news source added. This is due to more people in the younger generations marrying later, as well as being more mobile than past generations.

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