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Stock market has bearing on properties with commercial leases

| Jan 10, 2019 | Commercial Leases

Research shows that December was the hardest month for the United States stock market in the past 10 years. Naturally, many consumers and investors may be wondering how the economy around the globe will fare in 2019. Investors in Los Angeles might also wonder how the market’s current situation will impact deals involving properties featuring commercial leases.

The truth is, even though the stock market is often viewed as an indicator of the nation’s economic status, the United States’ economic situation is much more complicated. To get a complete picture of it, in addition to looking at stocks, one must also look at real estate. Stocks and real estate differ in that investors can trade stocks instantaneously, while a real estate transaction can take months and even years to finish.

The great news about the current stock market is that its volatility over the past two months is not robust enough to affect economic trends in the short or long run. Volatility can actually have a positive impact on real estate investments. The reason for this is that properties are considered to be more stable than stocks, with shares having the potential to fluctuate immensely by the hour or by the day.

Now may be the perfect time for investors in California to look into purchasing properties featuring commercial leases to increase their income in the new year. Of course, the process can be complicated for those who have not been through it before. Still, an attorney in Los Angeles can provide investors with the guidance needed to complete these transactions with confidence, making sure that all applicable legal rights are protected and that their best interests are upheld before they sign on the dotted line.