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Sales of properties with commercial leases were high in 2018

| Feb 7, 2019 | Commercial Leases

Sales of nonresidential properties reached near-record heights in 2018, with many of the biggest portfolio deals coming from the managers of private funds. In addition, today’s low interest rates may make for a strong 2019. This is good news for people who are interested in investing in properties featuring commercial leases in Los Angeles or the surrounding area this year.

The value of commercial properties that sold for at least $2.5 million in the United States reached a total of more than $562 billion in 2018. This was an increase of 15 percent compared with 2017. It was also not too far from the record amount of nearly $570 billion that was set back in 2015.

Property prices have also risen by more than 6 percent from one year to the next and are currently 30 percent higher than 2007 levels. Prices could have skyrocketed even more had people not been concerned about increasing interest rates. However, the recent announcement by the Federal Reserve that it plans to keep the rates steady may help to bolster the market in the near future.

With the commercial real estate market faring well over the past couple of years, investors may understandably be excited about being active in the market this year. However, navigating deals involving properties with commercial leases can be complicated. Unfortunately, the wrong move can end up costing an investor a deal or have negative long-term financial implications for him or her. An attorney in Los Angeles can provide investors with the direction they need to complete commercial property deals in the most personally beneficial manner possible.