The state of California has the sixth-biggest economy in the world, with its gross domestic product being $2.5 million. The state's economy grew by more than 3 percent back in 2016, more than two times the 1.5 percent growth that the nation as a whole experienced, and more than any other state's growth rate. Owning real estate, which may also include offering commercial leases, is one area that is particularly hot right now economically in Los Angeles and other parts of California.
There are four commercial real estate sectors in California, all of which currently have varying outlooks. Right now, retail space is expected to see little net growth, if any. In fact, many retail properties may end up being redeveloped into mixed-use projects or enclosed shopping malls. Just like retail space, office space -- the second commercial real estate sector -- may not see much growth due to the abundance of these types of spaces at the moment.
The third sector is the industrial sector, which has been drawing increasing attention since e-commerce requires modern distribution building. As a result, new construction has taken place, but existing urban industrial properties have also been redeveloped to be able to accommodate better and higher uses. The fourth sector, special-use properties, is also drawing more attention; for instance, assisted-living facilities are growing in demand in light of today's aging population.
When it comes to real estate, staying on top of the trends and being able to take advantage of buying and selling opportunities can be tricky. Even trickier may be the process of navigating a real estate deal when trying to buy or sell a property that can be used to provide commercial leases. An attorney in Los Angeles can help with each step of a commercial real estate deal to ensure that one's wishes are met and rights are protected.
Source: uli.org, "Addressing California's Greatest Real Estate Need", Jan B. Brzeski, July 31, 2017