According to a survey that UCLA helped to conduct regarding commercial real estate in Los Angeles and elsewhere in the state of California, the result of the Nov. 8 election last year should cause no major economic shift in the Golden State’s commercial real estate market this year. Thus, things are expected to be business as usual when it comes to the forming of real estate investment partnerships in 2017, for example. This is true despite the fact that Hilary Clinton was generally the favorite candidate among voters in the state.
The survey results indicated that it looks as though commercial real estate’s natural cycle is running its course independent of last year’s presidential election. This may be because of the increase in stock prices and consumer confidence, as well as because California’s regulatory environment is not expected to change a lot. Overall, the real estate outlook for 2017 looks positive.
However, driving factors in the real estate market include higher interest rates, a major shift toward online shopping and the continual redefinition of California’s office environment. According to the survey, the state is also coming to the end of its current office space boom. In addition, the survey results indicated that there is still strong optimism among people who develop multi-family dwellings, and the industrial market — especially warehouses — remains highly successful.
With the state of California projected to have a strong year in commercial real estate, now may be an ideal time to pursue real estate investment partnerships as well as other joint ventures in Los Angeles. These ventures may involve mixed-use projects, office buildings, hotels and industrial parks. A knowledgeable attorney can help one with integrating deal documents for an investment partnership and ensure that such documents comply with contractual requirements, including lender requirements, as appropriate.
Source: ucla.edu, “California commercial real estate market trends continue, despite 2016 election results“, Feb. 1, 2017