Throughout the United States, including in Los Angeles, lease rates for commercial properties are astonishing. When the market took a plunge during the Great Recession of 2008, the country lost between 40 and 50 percent of its values during in just six months to one year. Now, commercial leases are gaining steam.
Back in the recession days, many real estate experts wondered if the market for commercial property would recover at some point. Finally, an increase in sales prices was witnessed following changes to the country’s tax law in 2012. During the following three years of 2013 to 2015, selling prices immensely appreciated.
During this period, real estate experts expected commercial lease rates to go up, too. However, the increase in the rates is far greater than many imagined. The rates for Class A industrial leases started to approach a dollar per square foot by 2017. In addition, sales prices have surpassed even the highs of 2007 and are currently eclipsing 2016’s numbers.
Obsolete buildings are surprisingly drawing more attention than ever before. In the past, contemporary buildings were in demand, but in light of the shortage of buildings available, even the oldest buildings are becoming prime property — in other words, these ugly ducklings have transformed into beautiful swans. Thus, historic prices have been witnessed. For business owners who are interested in taking advantage of commercial leases while opportunities can still be found, an attorney in Los Angeles can help with looking over and even negotiating lease agreements to ensure business owners and investors avoid costly pitfalls in their effort to secure today’s in-demand spaces for lease.
Source: ocregister.com, “6 random commercial real estate thoughts“, Allen Buchanan, May 6, 2017