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

The industry of the life sciences in California — San Diego specifically — is growing exponentially. As a result, capital has been pouring into this market, and employment in this sector is up. This phenomenon is driving the demand for properties offering commercial leases — a Southern California trend that may have a major impact on Los Angeles in the near future. In 2018’s first quarter, venture capitalists poured more than $547 into more than 30 startups in the San Diego area. This is around 4 percent higher than the previous year. A large percentage of the venture capital went toward the life sciences. In fact, health care companies and biotech businesses represented seven in 10 regional deals during this time period. That is essentially 66 percent of the deals, valued at over $360 million. Big pharmaceutical companies are also moving into this area. As a result of all of this, employment in the life science field in San Diego County surpassed that of Orange County recently — the first time this has happened. Nearly 50,000 people have life science positions in the San Diego area. This may provide hope for those in Los Angeles who would like to see the area’s own life science industry develop, too, in the months and years ahead. These include real estate investors, who may be interested in purchasing specialized properties featuring commercial leases and leasing out their properties to biotech and health care businesses. Of course, navigating any commercial real estate can be tricky, particularly for those who have never done this before. Fortunately, an attorney can provide the guidance needed to successfully complete a commercial real estate deal in the Golden State. Source: bisnow.com, “ San Diego Life Science Industry Leaps Ahead, Real Estate Benefits “, Dees Stribling, April 19, 2018

In the not-so-distant past, consumerism and commerce meant taking a trip to a nearby mall. Nowadays, however, consumers in Los Angeles and elsewhere associate these terms with visiting an e-commerce hub and eagerly waiting for their new packages to arrive at their homes or businesses a couple of days later. The evolution taking place in commerce no doubt has an impact on the real estate market, specifically the market of properties featuring commercial leases. The real estate industry was admittedly unprepared for the rise of e-commerce. The result? Warehousing options ended up being limited. Thus, it may come as no surprise that commercial warehouse spending reached more than $24 billion last year — a record. In fact, spending on warehouse construction increased nearly 30 percent each year over the last five years, compared with just 1 percent annually during the past 19 years. In light of these changes, features such as having a location near major metros, high ceilings and wide open spaces are among the largest selling points among both tenants and investors. The booming warehouse sector does not appear to be slowing down in the near future, either. As warehousing rises in popularity, now may be a smart time to jump on the warehouse bandwagon by investing in large properties offering commercial leases that could be used for warehousing purposes. Of course, purchasing any piece of commercial real estate can be a daunting task, especially for those who have never been through the process before. Fortunately, an attorney in Los Angeles can provide the direction needed to navigate even the most complex real estate deals so that one’s personal goals are achieved in the Golden State. Source: Palo Alto, CA, Patch, “E-Commerce’s Impact on Commercial Real Estate”, David Taran, April 16, 2018

In the not-so-distant past, consumerism and commerce meant taking a trip to a nearby mall. Nowadays, however, consumers in Los Angeles and elsewhere associate these terms with visiting an e-commerce hub and eagerly waiting for their new packages to arrive at their homes or businesses a couple of days later. The evolution taking place in commerce no doubt has an impact on the real estate market, specifically the market of properties featuring commercial leases. The real estate industry was admittedly unprepared for the rise of e-commerce. The result? Warehousing options ended up being limited. Thus, it may come as no surprise that commercial warehouse spending reached more than $24 billion last year — a record. In fact, spending on warehouse construction increased nearly 30 percent each year over the last five years, compared with just 1 percent annually during the past 19 years. In light of these changes, features such as having a location near major metros, high ceilings and wide open spaces are among the largest selling points among both tenants and investors. The booming warehouse sector does not appear to be slowing down in the near future, either. As warehousing rises in popularity, now may be a smart time to jump on the warehouse bandwagon by investing in large properties offering commercial leases that could be used for warehousing purposes. Of course, purchasing any piece of commercial real estate can be a daunting task, especially for those who have never been through the process before. Fortunately, an attorney in Los Angeles can provide the direction needed to navigate even the most complex real estate deals so that one’s personal goals are achieved in the Golden State. Source: Palo Alto, CA, Patch, “E-Commerce’s Impact on Commercial Real Estate”, David Taran, April 16, 2018

WeWork, a company that offers workspaces for rent, recently claimed more space in California — specifically San Francisco. In fact, it just signed its largest Golden City lease. These types of commercial leases are becoming increasingly popular throughout the state, including in Los Angeles. The lease that WeWork recently signed is for a property that spans almost 250,000 square feet. The deal no doubt solidifies the business’ presence as a major player in San Francisco’s commercial real estate market. The company is planning to turn the building, which dates back to the 1960s, into an amenity-heavy and trendy-looking co-working space. WeWork has escalated in popularity during the past year, now nearly doubling the amount of space it leased last year. It is therefore currently San Francisco’s fourth-largest renter behind PG&E, Wells Fargo and Sales Force. The new building will expand WeWork’s footprint by more than 30 percent. The business, which was a mere startup eight years ago, is now worth tens of billions and has over 200 locations across the globe. Entrepreneurs and freelancers are becoming increasingly drawn to shared workspaces since they lack traditional offices. For this reason, now appears to be an ideal time to take advantage of commercial leases to offer these spaces to the increasing number of people who are venturing out to work for themselves. Of course, making a mistake when it is time to sign a lease can be financially devastating. Fortunately, an attorney in Los Angeles can review and negotiate a lease agreement for an aspiring tenant, to make sure that his or her best interests are protected before he or she signs on the dotted line. Source: sfchronicle.com, “ WeWork signs largest San Francisco lease yet for California Street tower “, Trisha Thadani and J.K. Dineen, March 28, 2018

WeWork, a company that offers workspaces for rent, recently claimed more space in California — specifically San Francisco. In fact, it just signed its largest Golden City lease. These types of commercial leases are becoming increasingly popular throughout the state, including in Los Angeles. The lease that WeWork recently signed is for a property that spans almost 250,000 square feet. The deal no doubt solidifies the business’ presence as a major player in San Francisco’s commercial real estate market. The company is planning to turn the building, which dates back to the 1960s, into an amenity-heavy and trendy-looking co-working space. WeWork has escalated in popularity during the past year, now nearly doubling the amount of space it leased last year. It is therefore currently San Francisco’s fourth-largest renter behind PG&E, Wells Fargo and Sales Force. The new building will expand WeWork’s footprint by more than 30 percent. The business, which was a mere startup eight years ago, is now worth tens of billions and has over 200 locations across the globe. Entrepreneurs and freelancers are becoming increasingly drawn to shared workspaces since they lack traditional offices. For this reason, now appears to be an ideal time to take advantage of commercial leases to offer these spaces to the increasing number of people who are venturing out to work for themselves. Of course, making a mistake when it is time to sign a lease can be financially devastating. Fortunately, an attorney in Los Angeles can review and negotiate a lease agreement for an aspiring tenant, to make sure that his or her best interests are protected before he or she signs on the dotted line. Source: sfchronicle.com, “ WeWork signs largest San Francisco lease yet for California Street tower “, Trisha Thadani and J.K. Dineen, March 28, 2018

Like many in California, you may be learning about the benefits of including real estate investment in your retirement portfolio. On the other hand, you may simply be excited by the many options available and hope to build a business through residential and commercial properties. Whatever your goals, the first roadblock you may encounter is obtaining the resources necessary to begin purchasing the investment properties. You may be considering the option of taking on a partner in your investments. There certainly are many advantages to forming a partnership, especially if you have a particular person in mind with whom you would like to work. However, understanding the drawbacks to a partnership is essential to making a wise decision. The advantages of a partnership Your partner may not only supply you with the funds and the worthy credit score you need to acquire investment real estate, but the right candidate may also bring critical skills to the operation, including investment experience, property management skills or a network of valuable connections. A successful partner will ideally make up for what you lack. As in a marriage, a partnership allows you to share the load. You and your partner can divide the tremendous amount of work involved in owning and managing investment property. You will also reduce the chance of missing or forgetting critical tasks since your partner will be a second set of eyes overseeing the operation. This will be most helpful if you intend to own multiple properties. The disadvantages When dividing the work and responsibility, you also divide the profits. Depending on the type of partnership you form and how you and your partner agree to divide the money, you may make less than half of what you would alone. This could be even less if you decide to take on multiple partners. You also relinquish a fair amount of control over the investment business. Every decision you make will involve your partner, and there may be times when you disagree. Another consideration when taking on an investment partner is the amount of complication you may be adding to your tax burden. Dividing the tax responsibilities can be complex and confusing enough to require legal assistance to avoid conflict with federal, state and local tax authorities. With the many factors involved in forming a partnership for your real estate investment, you may benefit from sound legal advice, especially from an attorney with experience in many aspects of real estate and investment law.

Like many in California, you may be learning about the benefits of including real estate investment in your retirement portfolio. On the other hand, you may simply be excited by the many options available and hope to build a business through residential and commercial properties. Whatever your goals, the first roadblock you may encounter is obtaining the resources necessary to begin purchasing the investment properties. You may be considering the option of taking on a partner in your investments. There certainly are many advantages to forming a partnership, especially if you have a particular person in mind with whom you would like to work. However, understanding the drawbacks to a partnership is essential to making a wise decision. The advantages of a partnership Your partner may not only supply you with the funds and the worthy credit score you need to acquire investment real estate, but the right candidate may also bring critical skills to the operation, including investment experience, property management skills or a network of valuable connections. A successful partner will ideally make up for what you lack. As in a marriage, a partnership allows you to share the load. You and your partner can divide the tremendous amount of work involved in owning and managing investment property. You will also reduce the chance of missing or forgetting critical tasks since your partner will be a second set of eyes overseeing the operation. This will be most helpful if you intend to own multiple properties. The disadvantages When dividing the work and responsibility, you also divide the profits. Depending on the type of partnership you form and how you and your partner agree to divide the money, you may make less than half of what you would alone. This could be even less if you decide to take on multiple partners. You also relinquish a fair amount of control over the investment business. Every decision you make will involve your partner, and there may be times when you disagree. Another consideration when taking on an investment partner is the amount of complication you may be adding to your tax burden. Dividing the tax responsibilities can be complex and confusing enough to require legal assistance to avoid conflict with federal, state and local tax authorities. With the many factors involved in forming a partnership for your real estate investment, you may benefit from sound legal advice, especially from an attorney with experience in many aspects of real estate and investment law.

Areas where remote workers and entrepreneurs can share workspaces have been springing up in California and elsewhere throughout the United States during the past several years. As a result, many investors have set their eyes on properties featuring commercial leases that could be used as shared office spaces. The downtown area of Santa Rosa, located a few hours from Los Angeles, is ready to make a major investment in this co-working trend. The first floor of a newspaper building in Santa Rosa is currently undergoing renovations to replicate the amenities, look and vibe of high-demand providers of co-working spaces in the San Francisco area. The aim is to offer office space spanning 10,000 square feet by the summer, followed by around 8,000 square feet of space in nearby Petaluma. This trend is not expected to die down anytime soon, either. Research shows that the number of co-working sites has skyrocketed from around 600 back in 2010 to about 14,000 across the globe by late 2017. A major appeal of these types of spaces is that workers can enjoy the type of convenience they would experience in a coffee shop while being able to focus on their work and even collaborate with professionals from various industries. In light of this, co-working spaces usually offer quick tea or coffee refills, high-speed wireless connections and the opportunity to schedule time for sensitive calls, and client meetings in private rooms. Investors interested in taking advantage of the co-working trend may understandably be excited by the prospect of purchasing properties featuring commercial leases. However, they may be overwhelmed by the transaction process, especially if they have not gone through it before. A savvy attorney in Los Angeles can provide the guidance needed to navigate a commercial real estate deal in the most personally favorable manner possible. Source: sonomanews.com, “ Co-working center coming to Santa Rosa “, Jeff Quackenbush, April 3, 2018

Areas where remote workers and entrepreneurs can share workspaces have been springing up in California and elsewhere throughout the United States during the past several years. As a result, many investors have set their eyes on properties featuring commercial leases that could be used as shared office spaces. The downtown area of Santa Rosa, located a few hours from Los Angeles, is ready to make a major investment in this co-working trend. The first floor of a newspaper building in Santa Rosa is currently undergoing renovations to replicate the amenities, look and vibe of high-demand providers of co-working spaces in the San Francisco area. The aim is to offer office space spanning 10,000 square feet by the summer, followed by around 8,000 square feet of space in nearby Petaluma. This trend is not expected to die down anytime soon, either. Research shows that the number of co-working sites has skyrocketed from around 600 back in 2010 to about 14,000 across the globe by late 2017. A major appeal of these types of spaces is that workers can enjoy the type of convenience they would experience in a coffee shop while being able to focus on their work and even collaborate with professionals from various industries. In light of this, co-working spaces usually offer quick tea or coffee refills, high-speed wireless connections and the opportunity to schedule time for sensitive calls, and client meetings in private rooms. Investors interested in taking advantage of the co-working trend may understandably be excited by the prospect of purchasing properties featuring commercial leases. However, they may be overwhelmed by the transaction process, especially if they have not gone through it before. A savvy attorney in Los Angeles can provide the guidance needed to navigate a commercial real estate deal in the most personally favorable manner possible. Source: sonomanews.com, “ Co-working center coming to Santa Rosa “, Jeff Quackenbush, April 3, 2018

Los Angeles is currently considered the best place for investing in real estate. However, San Diego, located only a couple of hours south of Los Angeles, is also apparently a real estate hot spot for investors. According to a recent real estate report, major money players are flocking to this city to purchase properties, including those featuring commercial leases. These players include the likes of pension funds and insurance companies. On a list of the most attractive places for investing in real estate, San Diego jumped from a No.  17 ranking in 2017 to a No. 11 ranking this year. The most desirable real estate properties in America’s Finest City include retail, office, multifamily and industrial properties. One reason investors like San Diego so much is that the vacancy rates are low and the economy is diversified. Another reason San Diego is high on many investors’ radars is that the lack of industrial and new office properties as well as development sites means higher rent returns. San Francisco is yet another California city that is drawing increasing interest from investors. About half of the investors who were recently surveyed acknowledged that they planned to increase their purchases in 2018 compared with 2017. Investing in real estate properties that feature commercial leases can be a personally exciting and lucrative endeavor. However, it also benefits the local economy, as it involves adding a new building to an area or taking an old one and renovating it to make it desirable. All of this ultimately benefits the local community. Still, navigating commercial real estate deals can be confusing, particularly for investors who have never done it before. An attorney in Los Angeles can provide the guidance needed to seal a real estate deal successfully in the Golden State. Source: sandiegouniontribune.com, “ San Diego becoming hot spot for real estate investing, report says “, Phillip Molnar, March 16, 2018

Los Angeles is currently considered the best place for investing in real estate. However, San Diego, located only a couple of hours south of Los Angeles, is also apparently a real estate hot spot for investors. According to a recent real estate report, major money players are flocking to this city to purchase properties, including those featuring commercial leases. These players include the likes of pension funds and insurance companies. On a list of the most attractive places for investing in real estate, San Diego jumped from a No.  17 ranking in 2017 to a No. 11 ranking this year. The most desirable real estate properties in America’s Finest City include retail, office, multifamily and industrial properties. One reason investors like San Diego so much is that the vacancy rates are low and the economy is diversified. Another reason San Diego is high on many investors’ radars is that the lack of industrial and new office properties as well as development sites means higher rent returns. San Francisco is yet another California city that is drawing increasing interest from investors. About half of the investors who were recently surveyed acknowledged that they planned to increase their purchases in 2018 compared with 2017. Investing in real estate properties that feature commercial leases can be a personally exciting and lucrative endeavor. However, it also benefits the local economy, as it involves adding a new building to an area or taking an old one and renovating it to make it desirable. All of this ultimately benefits the local community. Still, navigating commercial real estate deals can be confusing, particularly for investors who have never done it before. An attorney in Los Angeles can provide the guidance needed to seal a real estate deal successfully in the Golden State. Source: sandiegouniontribune.com, “ San Diego becoming hot spot for real estate investing, report says “, Phillip Molnar, March 16, 2018

California real estate stands out when compared with the Big Apple. Specifically, West Los Angeles is the top choice for those who want to buy properties featuring commercial leases. This is good news for those who are interested in expanding their real estate portfolios in the Golden State. According to the latest capitalization rates, office properties in the Big Apple are 20 percent overpriced on average when compared with office properties along the West Coast. This information comes from a recent real estate research report. Part of the reason that the Big Apple has experienced a decrease in the demand for real estate is that traditional tenants, such as financial service companies and law firms, have been trimming the amount of space they use per worker. At the same time, West Los Angeles has experienced a surge in the value of and in the demand for commercial real estate properties. Part of the reason for this increased demand is that more emphasis is being placed on buying existing properties versus building new ones that take up even more real estate. After all, Los Angeles already lacks an effective public transit system for its existing infrastructure, which has contributed to its clogged freeways. Claiming a piece of real estate featuring commercial leases can understandably be exciting for an investor in Los Angeles. However, the process of buying an office property, for example, can be tricky and even overwhelming. Fortunately, an experienced attorney can provide the guidance needed to successfully complete commercial real estate transactions in California. Source: bloomberg.com, “ L.A. Beats Manhattan on Office Real-Estate Profits “, David M. Levitt, March 9, 2018