California real estate stands out when compared with the Big Apple. Specifically, West Los Angeles is the top choice for those who want to buy properties featuring commercial leases. This is good news for those who are interested in expanding their real estate portfolios in the Golden State.
According to the latest capitalization rates, office properties in the Big Apple are 20 percent overpriced on average when compared with office properties along the West Coast. This information comes from a recent real estate research report. Part of the reason that the Big Apple has experienced a decrease in the demand for real estate is that traditional tenants, such as financial service companies and law firms, have been trimming the amount of space they use per worker.
At the same time, West Los Angeles has experienced a surge in the value of and in the demand for commercial real estate properties. Part of the reason for this increased demand is that more emphasis is being placed on buying existing properties versus building new ones that take up even more real estate. After all, Los Angeles already lacks an effective public transit system for its existing infrastructure, which has contributed to its clogged freeways.
Claiming a piece of real estate featuring commercial leases can understandably be exciting for an investor in Los Angeles. However, the process of buying an office property, for example, can be tricky and even overwhelming. Fortunately, an experienced attorney can provide the guidance needed to successfully complete commercial real estate transactions in California.
Source: bloomberg.com, “L.A. Beats Manhattan on Office Real-Estate Profits“, David M. Levitt, March 9, 2018