A community near Los Angeles — Pasadena — has experienced steady growth in property values. However, the increasing demand for commercial leases in particular has made it difficult to secure available space. Commercial demand is much higher today than the demand for retail spaces, which has decreased, as well as the demand for office space, which has flattened across the state.
At the present moment, not many new spaces for businesses to rent are being created. However, more inventory is necessary so that demand may be satisfied long term. This is especially true with more foreign investors pouring their money into this area of California. Foreign investments are actually pushing prices up in light of the increasing demand for these spaces.
According to officials, the decreased availability of space in buildings that can be rented stems from the over-subscription of space used for retail businesses. This is a cause for concern, in that commercial rentals and real estate purchases actually help the area to maintain its budget via property taxes. Officials said that they are continuing to promote this type of real estate as a smart investment.
With the rising demand for commercial leases, now appears to be an ideal time to pursue competitive leasing opportunities. However, rushing into signing a lease can have financial repercussions long term if the terms of the lease are not personally favorable. An attorney can help business owners in Los Angeles and other parts of the state of California to effectively review and negotiate these leases before signing them.
Source: pasadenanow.com, “Commercial Real Estate Inventory Nearly Depleted in Pasadena“, Andy Vitalicio and David Cross, March 20, 2017