The real estate industry remains strong in Los Angeles, leaving many Californian investors feeling excited about staying active — or becoming active — in this area. But what will 2019 look like for those interested in investing in buildings featuring commercial leases? Here’s a glimpse at commercial real estate investing trends that experts believe will dominate in the new year.
First, experts expect investors to avoid the United States’ primary metropolitan areas and instead invest in secondary markets. This is because today’s secondary markets are experiencing exponential growth along with strong price increases. Still, if the nation’s economy experiences a downturn in the coming months, investors might go back to primary markets — especially those on the coasts — since they offer more security due to being more liquid and bigger in size.
Second, retail struggled in 2017, but it has stabilized in 2018. For this reason, retailers are expected to start investing in physical stores again next year so that their customers can have truly omnichannel shopping opportunities. In the same manner, digitally native companies are expected to open physical locations, as this will allow them to grow more and keep more of their existing customers.
Another trend worth noting is that U.S. assets will remain in high demand, so the number of real estate transactions taking place nationwide should stay relatively high. Of course, purchasing properties featuring commercial leases can be daunting tasks for those investors who have never done it before or who have little experience with it. Fortunately, an attorney in Los Angeles can provide investors with the guidance needed to navigate these transactions successfully and with confidence in the Golden State.