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Finding the ideal space for housing a business in Los Angeles can no doubt be thrilling. However, an important step in this process is to agree to and sign a lease. Here is a look at the various types of commercial leases that business owners can take advantage of, with each one having both benefits and challenges. One type of commercial lease is a net lease. This type of lease offers the benefit of coming with a lower rent price. However, tenants who choose these types of leases are also responsible for additional rent fees that cover property maintenance and operation expenses like common area maintenance items, real estate taxes and property insurance. The common area maintenance item fees specifically cover fire sprinkler, parking lot, landscaping, trash, water, sewer, property management and janitorial service costs, among others. Another type of lease is an absolute triple net lease. This is essentially a net lease but one where tenants absorb all real estate responsibility and risk. For instance, tenants assume responsibility for all repairs and expenses related to the buildings they are leasing, such as the buildings’ structures and roofs. Finally, the third type of commercial lease is the modified gross lease. The benefit of this type of lease is that a tenant will pay a single set amount each month. Common area maintenance items, property taxes and insurance are included in the single monthly payment amount. However, the tenant will likely cover janitorial and utility services. Commercial leases can understandably be overwhelming, tricky and confusing. However, an attorney in Los Angeles can provide business owners with the guidance they need to effectively review and negotiate leases before signing on the dotted line. The attorney’s ultimate goal is to make sure that a business owner’s rights and best interests are protected before he or she moves forward with any commercial lease in the Golden State.

Los Angeles and other parts of California remain hot areas for the purchase and sale of business properties. However, not all types of commercial real estate are continuing to gain ground in the Golden State. Multifamily and industrial properties featuring commercial leases are especially in demand right now, whereas office and retail properties are losing steam. According to a recent survey, the office markets in California have all but topped out. The development of office buildings already purchased is expected to continue. However, the level of new development witnessed in a variety of markets during the past few years likely will not occur during the next few years, in part due to increasing cap rates. Retail is also struggling as whole in California. However, it is slated to keep improving in the Silicon Valley area. This area looks promising due to the rise in payroll employment as well as disposable income there. Unlike the office and retail markets as a whole, the industrial market continues to heat up in the Southern California area, including in the Inland Empire and Los Angeles and Orange counties. Industrial property remains in demand due to a rise in online shopping and imports. In addition, even though the multifamily market is expected to soften, this softening should not last long. In fact, 75 percent of survey respondents mentioned that they were planning brand-new projects in the Southern California area. Navigating commercial property transactions can no doubt be confusing and overwhelming. This is true whether a person is completing a transaction for the first time or the fifth time, as no two transactions are alike. Fortunately, an attorney can provide the essential legal guidance needed to successfully purchase/sell commercial properties or to develop land for properties featuring commercial leases in the Golden State.

Los Angeles and other parts of California remain hot areas for the purchase and sale of business properties. However, not all types of commercial real estate are continuing to gain ground in the Golden State. Multifamily and industrial properties featuring commercial leases are especially in demand right now, whereas office and retail properties are losing steam. According to a recent survey, the office markets in California have all but topped out. The development of office buildings already purchased is expected to continue. However, the level of new development witnessed in a variety of markets during the past few years likely will not occur during the next few years, in part due to increasing cap rates. Retail is also struggling as whole in California. However, it is slated to keep improving in the Silicon Valley area. This area looks promising due to the rise in payroll employment as well as disposable income there. Unlike the office and retail markets as a whole, the industrial market continues to heat up in the Southern California area, including in the Inland Empire and Los Angeles and Orange counties. Industrial property remains in demand due to a rise in online shopping and imports. In addition, even though the multifamily market is expected to soften, this softening should not last long. In fact, 75 percent of survey respondents mentioned that they were planning brand-new projects in the Southern California area. Navigating commercial property transactions can no doubt be confusing and overwhelming. This is true whether a person is completing a transaction for the first time or the fifth time, as no two transactions are alike. Fortunately, an attorney can provide the essential legal guidance needed to successfully purchase/sell commercial properties or to develop land for properties featuring commercial leases in the Golden State.

Investors in Los Angeles who are in search of a creative way to maximize their returns today may want to consider the real estate. Specifically, they may want to look at purchasing vacant land. After all, this land can be developed to include buildings featuring potentially lucrative commercial leases. For those interested in buying land, they may want to try to generate money from their land while they are waiting for the land to be developed. For instance, they may wish to use the land for agricultural purposes or even lease it. They could even make money from parking and billboards placed on the land. In addition, location is an extremely important factor to consider when purchasing land. It is critical that investors purchase land in an area where growth and demand are high. As a general rule of thumb, purchasing land within 30 miles of a large urban growth center is an excellent benchmark. Los Angeles is one city where economists predict job growth to continue for the next 10 to 20 years, so this is a golden area in which to invest. Although purchasing land, developing land and providing commercial leases can be exciting for any investor, it can also be complicated from a legal standpoint. Fortunately, an attorney in Los Angeles can provide investors with the guidance they need to navigate these types of commercial real estate matters. The attorney’s ultimate goal is to ensure that the client’s best interests and rights are protected during all real estate transactions completed in the Golden State.

Investors in Los Angeles who are in search of a creative way to maximize their returns today may want to consider the real estate. Specifically, they may want to look at purchasing vacant land. After all, this land can be developed to include buildings featuring potentially lucrative commercial leases. For those interested in buying land, they may want to try to generate money from their land while they are waiting for the land to be developed. For instance, they may wish to use the land for agricultural purposes or even lease it. They could even make money from parking and billboards placed on the land. In addition, location is an extremely important factor to consider when purchasing land. It is critical that investors purchase land in an area where growth and demand are high. As a general rule of thumb, purchasing land within 30 miles of a large urban growth center is an excellent benchmark. Los Angeles is one city where economists predict job growth to continue for the next 10 to 20 years, so this is a golden area in which to invest. Although purchasing land, developing land and providing commercial leases can be exciting for any investor, it can also be complicated from a legal standpoint. Fortunately, an attorney in Los Angeles can provide investors with the guidance they need to navigate these types of commercial real estate matters. The attorney’s ultimate goal is to ensure that the client’s best interests and rights are protected during all real estate transactions completed in the Golden State.

Research shows that nearly a fifth of real estate agents selling non-residential properties closed sales with international clients in 2017. In addition, 35 percent reported that they had seen more international clients come their way during the past few years. As a result, now may be an ideal time for commercial real estate owners in Los Angeles to sell properties featuring commercial leases. According to a recently conducted study, most real estate agents specializing in the buying and selling of commercial properties live in smaller markets. In these markets, their deals are usually under $2.5 million. However, these smaller markets’ profiles are continuing to rise, as many foreign investors show increased interest in smaller properties found in tertiary and secondary markets. As a result of the above, real estate agents are generally feeling more confident that increased leasing activity and sales will remain a trend in the rest of 2018. Since 2016, economies around the world have re-established themselves, leading to increased economic output worldwide in 2017. Commercial real estate, in particular, remains an especially healthy area in which investors around the world can invest. Selling properties featuring commercial leases can be a complicated process, even for those who have been through the commercial property sale process before. After all, no two properties and thus no two sales are alike. However, an attorney in Los Angeles can provide sellers with the direction they need to complete their real estate transactions in the most lucrative manner possible, so that they can potentially move forward with other investment opportunities.

Research shows that nearly a fifth of real estate agents selling non-residential properties closed sales with international clients in 2017. In addition, 35 percent reported that they had seen more international clients come their way during the past few years. As a result, now may be an ideal time for commercial real estate owners in Los Angeles to sell properties featuring commercial leases. According to a recently conducted study, most real estate agents specializing in the buying and selling of commercial properties live in smaller markets. In these markets, their deals are usually under $2.5 million. However, these smaller markets’ profiles are continuing to rise, as many foreign investors show increased interest in smaller properties found in tertiary and secondary markets. As a result of the above, real estate agents are generally feeling more confident that increased leasing activity and sales will remain a trend in the rest of 2018. Since 2016, economies around the world have re-established themselves, leading to increased economic output worldwide in 2017. Commercial real estate, in particular, remains an especially healthy area in which investors around the world can invest. Selling properties featuring commercial leases can be a complicated process, even for those who have been through the commercial property sale process before. After all, no two properties and thus no two sales are alike. However, an attorney in Los Angeles can provide sellers with the direction they need to complete their real estate transactions in the most lucrative manner possible, so that they can potentially move forward with other investment opportunities.

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.

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.

When it comes to insurance needs and risk management for development projects, you want to make sure that you have all of your bases covered. Dangers and hazards are everywhere at construction sites, and it’s nearly impossible to ensure everyone’s safety 100 percent of the time. Not only could the contractors and subcontractors working at the site suffer injuries, but someone not involved may also end up injured depending on the circumstances. In addition, the potential for inadvertent damage to your property or a neighboring property also exists. How are you going to cover everyone? Enter the OCIP Perhaps your development needs an OCIP, which stands for owner controlled insurance program. This general liability insurance exists to cover everyone involved in the project from you, as the property owner, down to the subcontractors. Even if someone else on the project causes damage or suffers an injury, it will eventually lead to you, so making sure that there is enough insurance to go around may prove useful. Seasoned developers may be wondering why something that used to exist only for projects worth at least $50 million ends up on smaller projects. These days, it saves everyone time and money since only one policy exists instead of several — one policy for one project. The intent of an OCIP is to simplify the process. Negotiating and paying for the OCIP You and the general contractor work out the details of the policy, which the general contractor then purchases. The general contractor hires subcontractors at lower rates since they won’t need to carry their own liability insurance for the project. The project manager is the point of contact for claims and is responsible for the payment of deductibles. Whether the subcontractor that caused the damaged in the claim pays any of the deductible is a point of negotiation when the subcontractor is hired and should be outlined in the resulting contract. Coverage and the OCIP At the very least, the OCIP contains workers’ compensation insurance and commercial general liability insurance, but it may also contain one or more of the following depending on the needs of the parties involved and the project itself: Builders risk insurance Umbrella insurance Professional liability insurance Pollution liability insurance An OCIP may not contain the following types of insurance: Commercial property insurance Commercial vehicle liability insurance Inland marine insurance To learn more about the advantages and disadvantages of an OCIP, along with whether it makes the most sense for your project, you may want to sit down with an attorney with experience in risk management and insurance. It would also be beneficial to have an advocate on your side when it comes time to negotiate the terms of your project’s insurance policy or policies to make sure you receive the best possible terms.

When it comes to insurance needs and risk management for development projects, you want to make sure that you have all of your bases covered. Dangers and hazards are everywhere at construction sites, and it’s nearly impossible to ensure everyone’s safety 100 percent of the time. Not only could the contractors and subcontractors working at the site suffer injuries, but someone not involved may also end up injured depending on the circumstances. In addition, the potential for inadvertent damage to your property or a neighboring property also exists. How are you going to cover everyone? Enter the OCIP Perhaps your development needs an OCIP, which stands for owner controlled insurance program. This general liability insurance exists to cover everyone involved in the project from you, as the property owner, down to the subcontractors. Even if someone else on the project causes damage or suffers an injury, it will eventually lead to you, so making sure that there is enough insurance to go around may prove useful. Seasoned developers may be wondering why something that used to exist only for projects worth at least $50 million ends up on smaller projects. These days, it saves everyone time and money since only one policy exists instead of several — one policy for one project. The intent of an OCIP is to simplify the process. Negotiating and paying for the OCIP You and the general contractor work out the details of the policy, which the general contractor then purchases. The general contractor hires subcontractors at lower rates since they won’t need to carry their own liability insurance for the project. The project manager is the point of contact for claims and is responsible for the payment of deductibles. Whether the subcontractor that caused the damaged in the claim pays any of the deductible is a point of negotiation when the subcontractor is hired and should be outlined in the resulting contract. Coverage and the OCIP At the very least, the OCIP contains workers’ compensation insurance and commercial general liability insurance, but it may also contain one or more of the following depending on the needs of the parties involved and the project itself: Builders risk insurance Umbrella insurance Professional liability insurance Pollution liability insurance An OCIP may not contain the following types of insurance: Commercial property insurance Commercial vehicle liability insurance Inland marine insurance To learn more about the advantages and disadvantages of an OCIP, along with whether it makes the most sense for your project, you may want to sit down with an attorney with experience in risk management and insurance. It would also be beneficial to have an advocate on your side when it comes time to negotiate the terms of your project’s insurance policy or policies to make sure you receive the best possible terms.

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.