In a prior post, we noted how the commercial real estate market was expected to be strong through 2018, thanks to several positive economic factors. They include a strong job market, low interest rates and dwindling vacancies.
The Los Angeles Times recently reported on another example of this trend. Rhode Island toy maker Hasbro recently decided to move its headquarters in Burbank to a larger space in the city’s media district. Specifically, Hasbro will now be located in the Media Studios North office park. The reasoning behind this move? It needed more room for its growing workforce.
The 78,000 square footage of office space is nearly double the size of the previous building. And it reflects the ongoing opportunities in the Tri-Cities area of Pasadena, Glendale and Burbank.
It is important to note that rents per square foot are increasing slightly, from $3.00 in the first few months of the year to $3.02 now. More importantly, vacancy rates have declined from 14.8 percent to 14 percent.
The growing market is a departure from the first quarter of this year, as the job market suffered several months of declines and many were concerned about slowing economic growth overall. Nevertheless, commercial real estate opportunities should be undertaken with caution underscored with legal advice. An experienced real estate attorney can help investors understand the legal implications with acquiring property and forge creative financial deals.
It remains to be seen whether these opportunities will continue as full employment may lead to slower commercial real estate growth.