Legal Advice Blog: Legal Advice, Case Insights, & Local Law Information

Our last few posts have focused on the state of the market and the growing opportunities with regard to commercial real estate and office locations. However, it is important for real estate investors and financiers to recognize the trends that could shape real estate development in the near future. Essentially, a recent globest.com article highlighted three related trends. We will describe what they are and how they may influence future projects. Generation specific housing – It’s no secret that the number of people reaching age 65 are growing each month. With that, the number of senior housing and assisted living facilities has to grow as well. Because of this, securing financing for these projects has become a critical aspect of development. Co-urbanism – Real estate development is changing with the changing population needs. This means that more multiuse projects that enable retail, office and living spaces to be in close proximity to each other have become important as working and shopping experiences continue to change. Cyber risk – With more developments touting intelligent technological benefits, including smart grids and automated retail operations, it is essential that these buildings be protected from cyber attacks. Ransomware and other attacks geared towards seizing private information cannot be ignored, and developers must include plans for cyber risk management. Indeed, the guidance and advice from experienced legal counsel can be very helpful as developers secure financing for future projects. But knowing how these three trends may shape future projects can give developers a better opportunity for success. The preceding is not legal advice.

Our last few posts have focused on the state of the market and the growing opportunities with regard to commercial real estate and office locations. However, it is important for real estate investors and financiers to recognize the trends that could shape real estate development in the near future. Essentially, a recent globest.com article highlighted three related trends. We will describe what they are and how they may influence future projects. Generation specific housing – It’s no secret that the number of people reaching age 65 are growing each month. With that, the number of senior housing and assisted living facilities has to grow as well. Because of this, securing financing for these projects has become a critical aspect of development. Co-urbanism – Real estate development is changing with the changing population needs. This means that more multiuse projects that enable retail, office and living spaces to be in close proximity to each other have become important as working and shopping experiences continue to change. Cyber risk – With more developments touting intelligent technological benefits, including smart grids and automated retail operations, it is essential that these buildings be protected from cyber attacks. Ransomware and other attacks geared towards seizing private information cannot be ignored, and developers must include plans for cyber risk management. Indeed, the guidance and advice from experienced legal counsel can be very helpful as developers secure financing for future projects. But knowing how these three trends may shape future projects can give developers a better opportunity for success. The preceding is not legal advice.

Our last few posts have focused on the state of the market and the growing opportunities with regard to commercial real estate and office locations. However, it is important for real estate investors and financiers to recognize the trends that could shape real estate development in the near future. Essentially, a recent globest.com article highlighted three related trends. We will describe what they are and how they may influence future projects. Generation specific housing – It’s no secret that the number of people reaching age 65 are growing each month. With that, the number of senior housing and assisted living facilities has to grow as well. Because of this, securing financing for these projects has become a critical aspect of development. Co-urbanism – Real estate development is changing with the changing population needs. This means that more multiuse projects that enable retail, office and living spaces to be in close proximity to each other have become important as working and shopping experiences continue to change. Cyber risk – With more developments touting intelligent technological benefits, including smart grids and automated retail operations, it is essential that these buildings be protected from cyber attacks. Ransomware and other attacks geared towards seizing private information cannot be ignored, and developers must include plans for cyber risk management. Indeed, the guidance and advice from experienced legal counsel can be very helpful as developers secure financing for future projects. But knowing how these three trends may shape future projects can give developers a better opportunity for success. The preceding is not legal advice.

As we have noted in a number of our posts, the commercial real estate market is poised to meet a number of expectations as mixed use properties become ever more popular and necessary. The latest example is Blossom Plaza. Set in Chinatown in downtown Los Angeles, the $100 million project will have 237 apartment units (which include 53 low-income rental units) retail space as well as a three level parking garage. Additionally, the property will have direct access to a Metro station, which will be an added perk for residents. Not only is Blossom Plaza the latest addition to downtown LA, it is the latest example of developers rushing “quickly” to acquire cheaper locations in order to develop properties at a reasonable expense. Indeed, land around the Staples Center and LA’s downtown core have become increasingly expensive, so developers had to get creative about locations that would be suitable in bringing a quality product to the public. After all, when a building is built at a lower price point because of lower real estate costs, there are a number of options available to the developer. As a result of this project, and a similar venture entitled Jia Apartments in 2014, upward pressure is being placed on prices per square foot. Yes, it has not reached the magical $1000 per square foot threshold, but they are stark reminders that the growing economy will create additional opportunities. If you have questions about commercial real estate financing, so that prime opportunities do not pass you by, an experienced attorney can advise you.

As we have noted in a number of our posts, the commercial real estate market is poised to meet a number of expectations as mixed use properties become ever more popular and necessary. The latest example is Blossom Plaza. Set in Chinatown in downtown Los Angeles, the $100 million project will have 237 apartment units (which include 53 low-income rental units) retail space as well as a three level parking garage. Additionally, the property will have direct access to a Metro station, which will be an added perk for residents. Not only is Blossom Plaza the latest addition to downtown LA, it is the latest example of developers rushing “quickly” to acquire cheaper locations in order to develop properties at a reasonable expense. Indeed, land around the Staples Center and LA’s downtown core have become increasingly expensive, so developers had to get creative about locations that would be suitable in bringing a quality product to the public. After all, when a building is built at a lower price point because of lower real estate costs, there are a number of options available to the developer. As a result of this project, and a similar venture entitled Jia Apartments in 2014, upward pressure is being placed on prices per square foot. Yes, it has not reached the magical $1000 per square foot threshold, but they are stark reminders that the growing economy will create additional opportunities. If you have questions about commercial real estate financing, so that prime opportunities do not pass you by, an experienced attorney can advise you.

Our last post voiced a word of caution with regard to commercial real estate. Essentially, with higher vacancy rates, prospective over-building and jitters in the commercial mortgage back securities market, signs pointing to a major downturn are visible in Southern California as well as other regions of the country. Nevertheless, as one form of real estate seems vulnerable, another shows signs of phenomenal growth. The latest investments in Anaheim are among the largest in the United States. According to a GlobeSt.com report, nearly $6 billion in investments are taking shape around Disneyland and Angel Stadium of Anaheim. Specifically, the addition of a Star Wars themed land at Disneyland was announced earlier this year. Also, four new luxury hotels and other lodging venues are under construction. This is in addition to the expansion of the Anaheim Convention Center. The new investments reflect the ongoing success of “destination investment” given that more people are willing to pay for quality entertainment experiences. This also compliments the ongoing need for space to host conventions. Further, there are new homes, a shopping center, restaurants and office space being planned around the Platinum Triangle area around Angel Stadium. This area was once littered with warehouses and industrial venues. Now it is re-emerging as an ideal place to live, work and play. It is drawing comparisons to L.A. Live in downtown Los Angeles, and the East Village in downtown San Diego. These types of multi-billion dollar investment plans require the guidance and expertise of experienced real estate attorneys. Contact a skilled lawyer who can help make ideas reality.

Our last post voiced a word of caution with regard to commercial real estate. Essentially, with higher vacancy rates, prospective over-building and jitters in the commercial mortgage back securities market, signs pointing to a major downturn are visible in Southern California as well as other regions of the country. Nevertheless, as one form of real estate seems vulnerable, another shows signs of phenomenal growth. The latest investments in Anaheim are among the largest in the United States. According to a GlobeSt.com report, nearly $6 billion in investments are taking shape around Disneyland and Angel Stadium of Anaheim. Specifically, the addition of a Star Wars themed land at Disneyland was announced earlier this year. Also, four new luxury hotels and other lodging venues are under construction. This is in addition to the expansion of the Anaheim Convention Center. The new investments reflect the ongoing success of “destination investment” given that more people are willing to pay for quality entertainment experiences. This also compliments the ongoing need for space to host conventions. Further, there are new homes, a shopping center, restaurants and office space being planned around the Platinum Triangle area around Angel Stadium. This area was once littered with warehouses and industrial venues. Now it is re-emerging as an ideal place to live, work and play. It is drawing comparisons to L.A. Live in downtown Los Angeles, and the East Village in downtown San Diego. These types of multi-billion dollar investment plans require the guidance and expertise of experienced real estate attorneys. Contact a skilled lawyer who can help make ideas reality.

The Clinton and Trump campaign camps didn’t really focus on the unemployment rate or the jobs report in their respective conventions, but the latest jobs report supports what analysts have been saying about the commercial real estate market for months. The national economy added 225,000 new jobs in July, and the unemployment rate remained unchanged at 4.9 percent. Overall, analysts determined that 1.3 million jobs have been added since the beginning of 2016. The professional and business sector added about 70,000 jobs. Additionally, the financial services sector added 18,000 jobs and hospitals added 17,000. The services industry also accounted for $19,000 jobs. Even the construction industry added jobs, which is not particularly common in summer months given how many projects are already underway. The common denominator between these is that they all call for additional office space, which arguably accounts for the increase in commercial real estate projects across Southern California. We noted in our prior post the trends that could dictate the future of commercial real estate projects, and the increasing need for office space corresponds with these trends. It remains to be seen whether the construction growth will continue in earnest. After all, the possibility of the Fed raising interest rates this fall is a viable possibility. In the meantime, investors and developers must make the best of existing opportunities, and an experienced real estate lawyer can help move potential to reality. If you need assistance or have pressing finance questions, a real estate attorney can advise you.

The Clinton and Trump campaign camps didn’t really focus on the unemployment rate or the jobs report in their respective conventions, but the latest jobs report supports what analysts have been saying about the commercial real estate market for months. The national economy added 225,000 new jobs in July, and the unemployment rate remained unchanged at 4.9 percent. Overall, analysts determined that 1.3 million jobs have been added since the beginning of 2016. The professional and business sector added about 70,000 jobs. Additionally, the financial services sector added 18,000 jobs and hospitals added 17,000. The services industry also accounted for $19,000 jobs. Even the construction industry added jobs, which is not particularly common in summer months given how many projects are already underway. The common denominator between these is that they all call for additional office space, which arguably accounts for the increase in commercial real estate projects across Southern California. We noted in our prior post the trends that could dictate the future of commercial real estate projects, and the increasing need for office space corresponds with these trends. It remains to be seen whether the construction growth will continue in earnest. After all, the possibility of the Fed raising interest rates this fall is a viable possibility. In the meantime, investors and developers must make the best of existing opportunities, and an experienced real estate lawyer can help move potential to reality. If you need assistance or have pressing finance questions, a real estate attorney can advise you.

In a number of our posts, we have noted how the desire for commercial real estate may be slowing even though some of the prime indicators (e.g. vacancy rates, cost per square foot, overall economic growth) may suggest that there are still opportunities for investors to take advantage of. However, the key is to purchase a property or enter into a development agreement at the right time. For many investors, the best time to do so is at the lowest point of a downturn, and according to a recent wallstreetdaily.com report, the time to invest in commercial real estate may be coming soon. The report suggests that the next economic downturn may seriously affect the commercial real estate market, especially considering how some retailers are struggling against their online counterparts. Analysts worry about vacancy rates being higher than their pre-recession levels, but with so much more commercial space available compared to pre-recession rates, the elevated number of vacancies could be attributable to overbuilding. Also, the market for commercial mortgage backed securities (CMBS) is not behaving normally. The market has not bounced back since a correction in the early part of 2016 sent prices spiraling downward. Further, with the FDIC, Federal Reserve and the Office of the Comptroller of the Currency expressing concerns over underwriting standards for commercial real estate loans, these factors all spell potential disaster for the market. In times like this, it is important to review one’s legal options in the event the market sees a crash reminiscent of the 2008 housing crisis.

In a number of our posts, we have noted how the desire for commercial real estate may be slowing even though some of the prime indicators (e.g. vacancy rates, cost per square foot, overall economic growth) may suggest that there are still opportunities for investors to take advantage of. However, the key is to purchase a property or enter into a development agreement at the right time. For many investors, the best time to do so is at the lowest point of a downturn, and according to a recent wallstreetdaily.com report, the time to invest in commercial real estate may be coming soon. The report suggests that the next economic downturn may seriously affect the commercial real estate market, especially considering how some retailers are struggling against their online counterparts. Analysts worry about vacancy rates being higher than their pre-recession levels, but with so much more commercial space available compared to pre-recession rates, the elevated number of vacancies could be attributable to overbuilding. Also, the market for commercial mortgage backed securities (CMBS) is not behaving normally. The market has not bounced back since a correction in the early part of 2016 sent prices spiraling downward. Further, with the FDIC, Federal Reserve and the Office of the Comptroller of the Currency expressing concerns over underwriting standards for commercial real estate loans, these factors all spell potential disaster for the market. In times like this, it is important to review one’s legal options in the event the market sees a crash reminiscent of the 2008 housing crisis.

In industry after industry, digital technology has changed the game in countless ways. From music (iTunes) to retail (Amazon) to the emerging internet-of-things, the changes have been pervasive and downright breathtaking. What about real estate? The ramifications of the online revolution are certainly affecting real estate development as well, such as in the rising risk of cyber attacks. What should developers be doing to manage these risks? In this post, we will address that question, using a Q & A format. Why would real estate development be affected by cyber attacks? New developments offer increasing levels of technological functionality, with ever-smarter computers to automate operations and connect buildings to sophisticated electronic grids. With these enhancements come a corresponding increase in the risk of cyber attacks. As we noted in our August 1 post, cyber risk management is therefore becoming more and more important. What are some of the cyber risks that must be managed? Unauthorized parties could take control of computer networks and hold them for ransom or obtain private information that could be used to commit fraud and other crimes. With more information available in the cloud, on mobile devices and on social media, there could also be risks of theft of electronic payments and sensitive personal information. There could also be theft of intellectual property. Malicious hackers could even try to harm tenants through control of computer-controlled facilities systems. They could also try to destroy the buildings themselves. The consequences to real estate companies if such attacks were successful would be significant. Tenants who have had their information compromised or even be assaulted might sue. Or, at the very least, they might leave for another building. But the consequences of a successful cyber attack would go beyond immediate revenue loss. There would also be long-term implications for the developer’s brand, posing major reputation-management challenges and legitimate shareholder concern. Have ransomware attacks been successful in other industries? Yes. Ransomware attacks are a growing problem in the health care industry. Several hospitals have had their computers hacked. Earlier this year a hospital in Los Angeles paid thousands of dollars to hackers in order to get its computer system released. The hospital industry is engaged in a furious game of data-security catch-up, trying to better protect itself from cyber attacks. What are some of the steps that developers should consider to reduce the risk of cyber attacks? Like health care companies, commercial real estate developers need to make improved cyber security a high priority. Once that is done, the tools and techniques will follow. For starters, this means making a clear assessment of the strategic risks and enlisting appropriate expertise to address them. Getting buy-in among the key leaders of the company, such as the chief information officer and the chief financial officer, is critical, because implementing an appropriate risk-management solution will require coordinated efforts throughout the company. Creating a robust response to the challenge of cyber attacks also requires a full awareness of legal issues. It is therefore important to get knowledgeable legal counsel about risk-management issues. This will help you avoid undue digital dilemmas as you seek to grow your business amid the opportunities and threats of this online age.