Los Angeles is currently considered the best place for investing in real estate. However, San Diego, located only a couple of hours south of Los Angeles, is also apparently a real estate hot spot for investors. According to a recent real estate report, major money players are flocking to this city to purchase properties, including those featuring commercial leases. These players include the likes of pension funds and insurance companies.
On a list of the most attractive places for investing in real estate, San Diego jumped from a No. 17 ranking in 2017 to a No. 11 ranking this year. The most desirable real estate properties in America’s Finest City include retail, office, multifamily and industrial properties. One reason investors like San Diego so much is that the vacancy rates are low and the economy is diversified.
Another reason San Diego is high on many investors’ radars is that the lack of industrial and new office properties as well as development sites means higher rent returns. San Francisco is yet another California city that is drawing increasing interest from investors. About half of the investors who were recently surveyed acknowledged that they planned to increase their purchases in 2018 compared with 2017.
Investing in real estate properties that feature commercial leases can be a personally exciting and lucrative endeavor. However, it also benefits the local economy, as it involves adding a new building to an area or taking an old one and renovating it to make it desirable. All of this ultimately benefits the local community. Still, navigating commercial real estate deals can be confusing, particularly for investors who have never done it before. An attorney in Los Angeles can provide the guidance needed to seal a real estate deal successfully in the Golden State.
Source: sandiegouniontribune.com, “San Diego becoming hot spot for real estate investing, report says“, Phillip Molnar, March 16, 2018