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Buildings with commercial leases have positive outlook

| Feb 21, 2018 | Commercial Leases

In Los Angeles and other parts of California, real estate experts are generally optimistic about the market. However, in the San Diego area, the market for buildings where commercial leases are available has especially turned positive. Still, the one area that continues to struggle is retail.

According to a university forecast that was recently released, the recent tax changes have made commercial real estate even more attractive. The reason for this is that pass-through income that goes to investors has received more liberal treatment in the tax law. The same is true for deductions based on corporate-owned structures’ values. Investors are now taking advantage of the opportunity to get back into real estate more aggressively due to these changes.

The outlook for industrial buildings has dropped a little since June but is still deemed to be positive. However, real estate institutions, developers and lenders are more pessimistic about retail ever since the new tax law was approved by Congress. Even though the holiday season last year was generally strong for purchases made in stores, too much space for retail is available. In light of this, experts expect restructuring to continue to take place in 2018.

Commercial real estate remains a potentially lucrative area for investors in Los Angeles and other parts of the Golden State. However, failure to navigate a deal correctly may end up costing the investor money, time and energy. In some cases, a mistake may derail a deal altogether. Fortunately, a qualified real estate attorney can provide the guidance needed to successfully purchase properties featuring income-generating commercial leases.

Source:, “Commercial real estate recovery extending 3 years but retail retrenching, survey shows“, Roger Showley, Feb. 17, 2018