In some areas of California, industrial real estate reportedly had a strong 2016 year. Vacant spaces are filling up, and new construction, which is creating more opportunities for commercial leases, is on an uptick. In addition, rents have risen for three years straight now. This may spell promise for business owners and investors in Los Angeles and other parts of the state.
Industrial property is actually expected to be the best performer in the commercial real estate market, given the increasing shift toward shopping online. Many online companies are looking for central locations in the state of California. After all, goods in the Golden State can easily be shipped within just one or two days.
In some cases, local developers who are creating manufacturing and warehouse space are having trouble keeping pace with the demand they are experiencing. This is particularly true for spaces ranging from 5,000 to 25,000 square feet in size. Properties that are of high quality typically do not remain on the market for very long.
As California continues to draw attention in the commercial real estate world, this may naturally be encouraging for Los Angeles investors who want to develop potentially profitable properties. Likewise, it may motivate business owners to pursue commercial leases in high-traffic business spots that will benefit their bottom line. Whether putting together a commercial lease, reviewing one or negotiating one, an attorney can help to make sure that the final version of the lease best protects one’s interests in today’s competitive real estate and business worlds.
Source: fresnobee.com, “Fresno and Visalia industrial real estate ends 2016 on a high note”, Bonhia Lee, March 30, 2017