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Data center, warehouse buildings with commercial leases in demand

| Dec 6, 2018 | Commercial Leases

Investors in Los Angeles may currently be wondering what their next moves should be in the property market. The market for buildings featuring commercial leases has been relatively robust overall, but what specific sectors would be wise to focus on as 2019 draws near? Here is a look at a couple of sectors that are showing great promise at the moment.

The first sector is the distribution center and warehouse sector. The demand for these types of assets by digital retailers has caused this sector to thrive in 2018. In fact, over 60 million square feet entered the market during quarter three — a nearly 11 percent rise from last year. Vacancy rates during this quarter remained at nearly 5 percent — a historical low — and rents also increased almost 6 percent.

The second sector is the data center market. Data centers as assets have grown in popularity among investors worldwide because cloud users want them. Nearly 180 megawatts have been absorbed nationwide, with billions of dollars in transactions occurring in the earlier part of 2018.

Deciding which properties featuring commercial leases are the best investment options can understandably be challenging. However, once investors have finally decided to pursue specific types of properties, they may run into another challenge: figuring out how to navigate the legal aspects of their deals in the most personally beneficial manner possible. This is particularly true for investors who do not have much experience in the industry. An attorney in Los Angeles can help investors to successfully complete their deals, ensuring that their rights and best interests are protected from start to finish.