In Los Angeles County, a quickly growing outlier is nearby Santa Clarita Valley. In fact, traffic levels in this area recently exceeded those of the years 2010 to 2012. The strong growth being witnessed in the area may be a motivating factor for businesses to pursue commercial leases in the area.
Information about the growth of Santa Clarita Valley was recently shared during an economic forecast meeting involving business people and economic development professionals. Bankers and commercial real estate brokers also participated. The economist who spoke during the meeting emphasized that not only high traffic levels but also the low percentage of commercial real estate vacancies are indicators of the region’s strong growth.
In 2016, the area had an 8.3 percent vacancy rate. This was one of the lowest rates in the Southern California area. This was at a time when landlords have been struggling to fill big sites in Los Angeles County. In addition, job growth is expected to rise almost 3 percent this year in areas such as professional business, health care, leisure and retail services.
Officials anticipate that commercial investment in the Santa Clarita region will rise significantly between now and the year 2022, totaling over $540 million. This is a much bigger jump than the $394 million worth of commercial investment that took place in the region from 2011 to 2016. With strong growth on the horizon, now appears to be an ideal time to take advantage of commercial leases while vacancies still exist. An attorney can help business owners to understand and negotiate the terms of any lease before they sign on the dotted line.
Source: sfvbj.com, “Economist Reports Strong Growth for Santa Clarita“, March 31, 2017