Investors in Los Angeles and other parts of the United States might understandably be interested in purchasing older properties. The reason for this is that some tenants may view older properties featuring commercial leases as being more authentic and having more architectural character. The main obstacle that investors face with these types of properties, though, is that updating them from a technology standpoint can be difficult.
Technology has transformed nearly all aspects of people's lives, and real estate in Los Angeles and other parts of California is no exception. Specifically, those who own properties featuring commercial leases will no doubt be impacted by proptech companies -- companies that produce technology related to properties -- in the years ahead. Here is a look at what proptech companies are doing and how this will impact real estate in 2018 and beyond.
Across the country, retail locations of various types of stores are closing at a rapid pace. With more and more shopping opportunities available online, more consumers are choosing to spend their money from the comfort of their own homes. However, these trends are not necessarily true for Los Angeles.
The market for nonresidential properties appears to be relatively robust in Southern California. This is evidenced by the fact that the renters of large office spaces in Orange County and Los Angeles are jumping on their lease renewals early. Research shows that office tenants that are occupying at least 75,000 square feet of properties featuring commercial leases are renewing their leases 22 months ahead of time on average.
When it comes to selling properties in Los Angeles, sellers are legally obligated to disclose possible problems to prospective buyers that may impact the properties' value. Also, it is not legal to purposely hide major property defects. If a seller fails to share with potential buyers any major problems that his or her property has, this is grounds for real estate litigation.