Blog / Commercial Leases

Blog

All Commercial Leases Real Estate Litigation investment Partnerships Firm News Risk Management Business Law Real Estate Law Landlord Tenant Law Local Ordinances Contract Disputes Insurance Law Real Estate Transactions

Selling properties with commercial leases can be tricky

For those interested in selling business properties in Los Angeles, issues can easily crop up that are beyond the seller’s control. However, in some cases, some of the issues that arise can be blamed on the seller’s mistakes. Here are a couple of mistakes that sellers of properties featuring commercial leases may make in California. One common mistake that sellers make involves not approaching month-to-month leases properly. If a buyer is using a lender, the lender will want to see that the seller has a contractual flow of income that is greater than the mortgage payment. For sellers who may have some month-to-month tenants paying rent amounts that are below market, the sellers would be wise to lock these tenants into longer-term leases. If the property buyers will likely maintain these tenants, then the sellers may wish to get the tenants signed to one-year leases at the very least. Another common mistake involves overpricing properties. All properties are unique, so establishing the perfect prices for properties can be complicated. The goal is to price a property in an aggressive manner without necessarily turning off interested buyers. If the prices of properties are too high, buyers may be reluctant to inquire about them, thus leading to lost sales opportunities for the sellers of these properties. Selling properties featuring commercial leases can be rewarding if the sellers can market these properties effectively. However, in addition to dealing with the sales aspect of a deal, sellers must be prepared to deal with its legal aspects as well. An attorney can provide sellers with the guidance they need to navigate even the most legally complex deals with confidence in Los Angeles.

Selling properties with commercial leases can be tricky

For those interested in selling business properties in Los Angeles, issues can easily crop up that are beyond the seller’s control. However, in some cases, some of the issues that arise can be blamed on the seller’s mistakes. Here are a couple of mistakes that sellers of properties featuring commercial leases may make in California. One common mistake that sellers make involves not approaching month-to-month leases properly. If a buyer is using a lender, the lender will want to see that the seller has a contractual flow of income that is greater than the mortgage payment. For sellers who may have some month-to-month tenants paying rent amounts that are below market, the sellers would be wise to lock these tenants into longer-term leases. If the property buyers will likely maintain these tenants, then the sellers may wish to get the tenants signed to one-year leases at the very least. Another common mistake involves overpricing properties. All properties are unique, so establishing the perfect prices for properties can be complicated. The goal is to price a property in an aggressive manner without necessarily turning off interested buyers. If the prices of properties are too high, buyers may be reluctant to inquire about them, thus leading to lost sales opportunities for the sellers of these properties. Selling properties featuring commercial leases can be rewarding if the sellers can market these properties effectively. However, in addition to dealing with the sales aspect of a deal, sellers must be prepared to deal with its legal aspects as well. An attorney can provide sellers with the guidance they need to navigate even the most legally complex deals with confidence in Los Angeles.

Retail commercial leases still offer promise for investors

The real estate world continues to evolve, so much so that it can be difficult to keep up. Of course, failure to keep up may mean many lost investing opportunities. Here is a look at a particular real estate myth that some investors in Los Angeles believe — a myth that impacts those interested in investing in properties featuring commercial leases. E-commerce has most definitely changed how consumers shop. However, this does not mean that physical retailers will be extinct in the near future. After all, retail sales in stores made up more than 90 percent of the $5 million-plus generated in the United States retail market in 2017. In addition, retail sales are slated to climb more than 4 percent this year. The retail world is here to stay. It is simply taking on a new look. Landlords today are turning to pop-up tenants, entertainment and food-and-beverage businesses to give today’s consumers the type of diversity they are demanding. Convenience and discount merchandisers are especially popping up in droves due to high demand. The trick in 2018’s retail market is determining what customers are looking for and cannot easily get online. With retail still alive and going strong in Los Angeles, now might be the perfect time to invest in properties featuring commercial leases. Once these types of properties are purchased, investors can simply focus on drawing the right tenants to their spaces with the hopes of meeting local shoppers’ needs and ultimately seeing their profits soar. An attorney can provide an investor with the guidance he or she needs to complete a commercial real estate property purchase, ensuring that his or her best interests are protected each step of the way.

Retail commercial leases still offer promise for investors

The real estate world continues to evolve, so much so that it can be difficult to keep up. Of course, failure to keep up may mean many lost investing opportunities. Here is a look at a particular real estate myth that some investors in Los Angeles believe — a myth that impacts those interested in investing in properties featuring commercial leases. E-commerce has most definitely changed how consumers shop. However, this does not mean that physical retailers will be extinct in the near future. After all, retail sales in stores made up more than 90 percent of the $5 million-plus generated in the United States retail market in 2017. In addition, retail sales are slated to climb more than 4 percent this year. The retail world is here to stay. It is simply taking on a new look. Landlords today are turning to pop-up tenants, entertainment and food-and-beverage businesses to give today’s consumers the type of diversity they are demanding. Convenience and discount merchandisers are especially popping up in droves due to high demand. The trick in 2018’s retail market is determining what customers are looking for and cannot easily get online. With retail still alive and going strong in Los Angeles, now might be the perfect time to invest in properties featuring commercial leases. Once these types of properties are purchased, investors can simply focus on drawing the right tenants to their spaces with the hopes of meeting local shoppers’ needs and ultimately seeing their profits soar. An attorney can provide an investor with the guidance he or she needs to complete a commercial real estate property purchase, ensuring that his or her best interests are protected each step of the way.

Properties with commercial leases to be impacted by blockchain

The real estate market in Los Angeles and elsewhere continues to change thanks to the advancements being made in technology. A particular change that appears to becoming to real estate is the increasing use of cryptocurrency. This form of currency may come in handy not only for residential real estate but also for purchasing properties featuring commercial leases. Real estate appears to be the ideal sector for embracing blockchain-driven innovation. In the past, completing real estate transactions via digital channels was never the norm. After all, these types of transactions have traditionally be conducted face-to-face with a wide range of entities. However, blockchain is opening up a number of ways in which to change this. For instance, the smart contracts available in today’s blockchain platforms currently allow for the tokenization and trading of real estate using Bitcoin and other cryptocurrencies. With blockchain technology, those completing real estate transactions essentially no longer need an expensive broker to facilitate their transactions. Instead, they can use the blockchain — a peer-to-peer, distributed network — instead. A major benefit of this is that the blockchain may make property data much more accessible and centralized. Whether properties featuring commercial leases are purchased with cryptocurrency or with traditional cash, the process itself can seem daunting. This is particularly true for those in Los Angeles who have little experience with the dynamic and competitive commercial real estate market. Fortunately, an attorney can provide the guidance needed to navigate these types of transactions correctly and confident in the Golden State.

Properties with commercial leases to be impacted by blockchain

The real estate market in Los Angeles and elsewhere continues to change thanks to the advancements being made in technology. A particular change that appears to becoming to real estate is the increasing use of cryptocurrency. This form of currency may come in handy not only for residential real estate but also for purchasing properties featuring commercial leases. Real estate appears to be the ideal sector for embracing blockchain-driven innovation. In the past, completing real estate transactions via digital channels was never the norm. After all, these types of transactions have traditionally be conducted face-to-face with a wide range of entities. However, blockchain is opening up a number of ways in which to change this. For instance, the smart contracts available in today’s blockchain platforms currently allow for the tokenization and trading of real estate using Bitcoin and other cryptocurrencies. With blockchain technology, those completing real estate transactions essentially no longer need an expensive broker to facilitate their transactions. Instead, they can use the blockchain — a peer-to-peer, distributed network — instead. A major benefit of this is that the blockchain may make property data much more accessible and centralized. Whether properties featuring commercial leases are purchased with cryptocurrency or with traditional cash, the process itself can seem daunting. This is particularly true for those in Los Angeles who have little experience with the dynamic and competitive commercial real estate market. Fortunately, an attorney can provide the guidance needed to navigate these types of transactions correctly and confident in the Golden State.

Building featuring commercial leases purchased for over $130M

A large office campus that eBay occupies in San Jose, California, was recently purchased. The sale price for the building featuring commercial leases was over $130 million. Investors with ties to another country completed the major purchase, the likes of which are continuing to draw attention throughout the Golden State, including in Los Angeles. The office campus that was recently bought spans 250,000 square feet and features four buildings. The investors, who paid a total of $132.5 million for the campus and also secured an $88 million loan from a bank, have completed other notable real estate deals recently as well. For instance, in July 2017, they bought an office complex containing the National Aeronautics Space Agency’s headquarters. The investors also purchased the DreamWorks Animation’s headquarters in Oct.  2017. Several other companies have all purchased big properties in the northern part of San Jose as well. These high-profile businesses include Samsung, Microsoft, Google and Apple, for example. Demand is expected to continue to drive development activity and investment in northern San Jose. Purchasing properties featuring commercial leases in California can be both exhilarating and intimidating, as one wrong decision can end up costing a buyer more than expected or may derail a potentially favorable deal altogether. This is true whether it is a buyer’s first time or fifth time completing this type of real estate transaction. Fortunately, a real estate attorney in Los Angeles can walk a buyer through the transaction to ensure that his or her best interests are protected during all stages of the process.

Building featuring commercial leases purchased for over $130M

A large office campus that eBay occupies in San Jose, California, was recently purchased. The sale price for the building featuring commercial leases was over $130 million. Investors with ties to another country completed the major purchase, the likes of which are continuing to draw attention throughout the Golden State, including in Los Angeles. The office campus that was recently bought spans 250,000 square feet and features four buildings. The investors, who paid a total of $132.5 million for the campus and also secured an $88 million loan from a bank, have completed other notable real estate deals recently as well. For instance, in July 2017, they bought an office complex containing the National Aeronautics Space Agency’s headquarters. The investors also purchased the DreamWorks Animation’s headquarters in Oct.  2017. Several other companies have all purchased big properties in the northern part of San Jose as well. These high-profile businesses include Samsung, Microsoft, Google and Apple, for example. Demand is expected to continue to drive development activity and investment in northern San Jose. Purchasing properties featuring commercial leases in California can be both exhilarating and intimidating, as one wrong decision can end up costing a buyer more than expected or may derail a potentially favorable deal altogether. This is true whether it is a buyer’s first time or fifth time completing this type of real estate transaction. Fortunately, a real estate attorney in Los Angeles can walk a buyer through the transaction to ensure that his or her best interests are protected during all stages of the process.

Buildings with commercial leases remain in demand

In Los Angeles and elsewhere, non-residential real estate remains in high demand. A number of factors have been contributing to the growing demand for real estate featuring commercial leases. Here is a glimpse at some of these factors. First, experts say that, during the next few years, technological advancement will continue to drive real estate growth across the country. Another possible contributing factor to real estate growth in the near future is the recent rewriting of the nation’s tax code that Congress passed. After all, this is the most extensive update of the code in three decades. Solid job growth is also signaling opportunities in the real estate sector. In a survey, 66 percent of executives said that job creation this year would be significantly or marginally higher than last year. Nonetheless, nearly half of survey respondents asserted that they were concerned about the impacts of rising interest rates on the U.S. economy, which might temper the current momentum of the market. When it comes to financing, though, many investors are turning to banks and private equity funds to fund their real estate transactions. The real estate market in Los Angeles and other parts of California is a complex beast. Thus, naturally, purchasing properties featuring commercial leases can be complicated and overwhelming. Fortunately, buyers do not have to go about their real estate transactions alone. An attorney can provide them with the direction they need to complete their deals in the most personally favorable manner possible in the Golden State.

Buildings with commercial leases remain in demand

In Los Angeles and elsewhere, non-residential real estate remains in high demand. A number of factors have been contributing to the growing demand for real estate featuring commercial leases. Here is a glimpse at some of these factors. First, experts say that, during the next few years, technological advancement will continue to drive real estate growth across the country. Another possible contributing factor to real estate growth in the near future is the recent rewriting of the nation’s tax code that Congress passed. After all, this is the most extensive update of the code in three decades. Solid job growth is also signaling opportunities in the real estate sector. In a survey, 66 percent of executives said that job creation this year would be significantly or marginally higher than last year. Nonetheless, nearly half of survey respondents asserted that they were concerned about the impacts of rising interest rates on the U.S. economy, which might temper the current momentum of the market. When it comes to financing, though, many investors are turning to banks and private equity funds to fund their real estate transactions. The real estate market in Los Angeles and other parts of California is a complex beast. Thus, naturally, purchasing properties featuring commercial leases can be complicated and overwhelming. Fortunately, buyers do not have to go about their real estate transactions alone. An attorney can provide them with the direction they need to complete their deals in the most personally favorable manner possible in the Golden State.

Competition for land, commercial leases affects memory care field

As Americans in Southern California keep aging, the current senior care center inventory will not be enough to support the increasing number of elderly individuals. This is particularly true for centers that deal with memory care — for example, those that accommodate patients with Alzheimer’s disease and dementia. At the same time, the shrinking availability of land and commercial leases in dense parts of Southern California, such as Los Angeles, has pushed memory care-related development into the region’s secondary markets. Secondary markets for memory care development include the likes of San Diego County, the San Fernando Valley and Riverside County. Those wishing to develop land for memory care facilities face stiff competition from single-family and multifamily developers. After all, the latter have a far better land stake since they can cover the cost of land with their handy compressed cap rates. In addition to looking at secondary markets, developers of memory care facilities have become more creative when it comes to building and financing their spaces. For instance, long-term leases for land have become more commonplace across Southern California for all classes of assets. These types of leases were once unpopular for developers and banks to use for underwriting purposes. Los Angeles remains an in-demand area for those looking for commercial leases or property to develop for their businesses. However, this also means that competition there is tough. Fortunately, an attorney can offer the legal guidance that aspiring business tenants, property investors or property developers need to achieve their unique goals in the booming Southern California real estate market. Source: bisnow.com, “ High Land Prices An Obstacle For SoCal Memory Care Developers “, Parker Brown, May 29, 2018

Competition for land, commercial leases affects memory care field

As Americans in Southern California keep aging, the current senior care center inventory will not be enough to support the increasing number of elderly individuals. This is particularly true for centers that deal with memory care — for example, those that accommodate patients with Alzheimer’s disease and dementia. At the same time, the shrinking availability of land and commercial leases in dense parts of Southern California, such as Los Angeles, has pushed memory care-related development into the region’s secondary markets. Secondary markets for memory care development include the likes of San Diego County, the San Fernando Valley and Riverside County. Those wishing to develop land for memory care facilities face stiff competition from single-family and multifamily developers. After all, the latter have a far better land stake since they can cover the cost of land with their handy compressed cap rates. In addition to looking at secondary markets, developers of memory care facilities have become more creative when it comes to building and financing their spaces. For instance, long-term leases for land have become more commonplace across Southern California for all classes of assets. These types of leases were once unpopular for developers and banks to use for underwriting purposes. Los Angeles remains an in-demand area for those looking for commercial leases or property to develop for their businesses. However, this also means that competition there is tough. Fortunately, an attorney can offer the legal guidance that aspiring business tenants, property investors or property developers need to achieve their unique goals in the booming Southern California real estate market. Source: bisnow.com, “ High Land Prices An Obstacle For SoCal Memory Care Developers “, Parker Brown, May 29, 2018

Contact Us

Fill out this form below and we'll contact you shortly
*Required Fields