In the not-so-distant past, consumerism and commerce meant taking a trip to a nearby mall. Nowadays, however, consumers in Los Angeles and elsewhere associate these terms with visiting an e-commerce hub and eagerly waiting for their new packages to arrive at their homes or businesses a couple of days later. The evolution taking place in commerce no doubt has an impact on the real estate market, specifically the market of properties featuring commercial leases.
The real estate industry was admittedly unprepared for the rise of e-commerce. The result? Warehousing options ended up being limited. Thus, it may come as no surprise that commercial warehouse spending reached more than $24 billion last year — a record.
In fact, spending on warehouse construction increased nearly 30 percent each year over the last five years, compared with just 1 percent annually during the past 19 years. In light of these changes, features such as having a location near major metros, high ceilings and wide open spaces are among the largest selling points among both tenants and investors. The booming warehouse sector does not appear to be slowing down in the near future, either.
As warehousing rises in popularity, now may be a smart time to jump on the warehouse bandwagon by investing in large properties offering commercial leases that could be used for warehousing purposes. Of course, purchasing any piece of commercial real estate can be a daunting task, especially for those who have never been through the process before. Fortunately, an attorney in Los Angeles can provide the direction needed to navigate even the most complex real estate deals so that one’s personal goals are achieved in the Golden State.
Source: Palo Alto, CA, Patch, “E-Commerce’s Impact on Commercial Real Estate”, David Taran, April 16, 2018