The real estate industry in Los Angeles and other parts of the United States continues to change as a result of a variety of factors. These factors include both short-term and longer-term issues. Here is a look at a couple of these issues and how they may impact those purchasing properties featuring commercial leases going forward.
A shorter-term issue that is affecting commercial real estate is rising interest rates. As interest rates rise, fewer investors have shown an interest in purchasing real estate properties. However, this cloud does have a silver lining, in that investors who have been struggling to get into the market due to stiff competition may now be able to enter it more easily.
A long-term issue that is impacting commercial real estate across the country is disruptive technology. Examples of this type of technology include robotic warehousing and manufacturing, driverless trucks and cars, automated business processes and global connectivity. Other examples are information protection via cybersecurity, the availability of transactional and personal data for enhancing business decisions, and smart building technologies that enable efficiency. Investors who decide to purchase commercial real estate would be wise to follow these trends to make sure that their properties adequately meet the needs of the modern business owner.
Purchasing properties featuring commercial leases can certainly be overwhelming for those with little experience in the industry. However, real estate purchases can be just as daunting for an industry veteran, depending on the nature of a given transaction. Fortunately, an attorney in Los Angeles can easily walk an investor through the real estate purchase process, ensuring that his or her legal rights and financial best interests are protected each step of the way.