Hot SoCal Market Warms Up Region's REITs

The Southern California office and industrial markets have been on a tear this year, and real estate investment trusts focused on the region have seen their share prices surge.

Arden Realty (ARI Quote), a major office owner in Los Angeles and Orange County, is seen as a likely buyout target due to its portfolio. In coming months, Douglas Emmett -- a well-respected Los Angeles office and apartment owner -- is expected to file for an initial public offering.

What's got everyone abuzz about Southern California is that the area's office and industrial markets have been solid performers in a generally lackluster national environment. Job growth in the area has been strong, leading to low vacancy rates and growing rents across the region. ...