A lease governs a tenant’s and landlord’s entire rental relationship. This includes what both sides’ duties are, the rent amount and what should happen if either side fails to comply with the terms of the lease. For this reason, understanding how leases work, especially commercial leases, is critical for aspiring tenants in Los Angeles.

Business owners who operate retail establishments and are looking for commercial leases may benefit from insisting upon a type of provision that will prevent their landlords from renting any space near them to their competitors. They may also want to spell out any and all conditions under which they can break free from their leases, as well as what the notice requirements are. Furthermore, if a dispute arises, how will it end up being resolved? Detailing this in a commercial lease can be advantageous as well.

Another important consideration when pursuing a commercial lease is ensuring that the lease agreement features spatial specifications. In other words, it may be helpful to have the lease spell out the amount of space being rented as well as what areas are included. After all, landlords’ measurements tend to be exaggerated. If would-be tenants end up finding discrepancies in the reported and the actual space amounts, this may be an invaluable bargaining tool.

Negotiating a commercial lease is just another part of doing business, but that does not mean a business owner has to go about the process alone. A qualified real estate attorney in Los Angeles with knowledge of commercial leases can help the business owner to negotiate his or her lease effectively. The attorney’s goal is to ensure that the business owner’s rights are protected and promoted before he or he signs on the dotted line.

Source: findlaw.com, “Commercial Lease Negotiation Checklist“, Accessed on Feb. 6, 2018

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Thanks to the advent of technology, machines may end up dictating real estate’s future in Los Angeles and other parts of California. After all, start-up real estate companies are trying to pinpoint new ways of selling not only residential property but also properties featuring commercial leases. This may result in cost savings that will benefit buyers and sellers as well as business owners interested in leasing spaces in commercial buildings.

A company in Silicon Valley, known as Zenplace, utilizes a tablet for renting hundreds of properties throughout the northern part of the state. The company has made the whole leasing process more efficient so that the process takes between 15 and 20 minutes instead of days or even weeks. A real estate agent who is licensed essentially controls a robot remotely so that prospective buyers can tour a property with the robot’s help, for example.

With the newest technologies, leasing agents can now do between 15 and 20 showings per day. In the past, agents were able to complete only three to four showings each day. The reason for the drastic change is that factors such as individuals running late, parking and traffic are no longer an issue when the agent can operate remotely.

The changes taking place in the real estate world may seem exciting to business owners interested in commercial leases. However, some things do not change — such as the need to thoroughly review lease agreements and negotiate them effectively. A qualified attorney in Los Angeles can provide the necessary guidance to ensure that a business owner’s best interests are protected before he or she signs on the dotted line of a lease agreement.

Source: wtkr.com, “Are robots the future of real estate?“, Feb. 13, 2018

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As a California business owner, signing a commercial lease is an important step that could be important for your business. This is a major legal and financial decision, and there are many things you may need to consider as you secure a storefront or operational space for your company.

With the high cost of leasing space, you would be wise to seek guidance as you move forward with this crucial step. It is prudent to carefully review all lease documents in order to protect yourself from unexpected rules, restrictions and financial liability. Acting with prudence and caution before signing can help you avoid complications and unexpected costs in the future.

Useful questions before you sign a commercial lease

Before signing a commercial lease, there are various questions you can ask that will help you avoid issues in the future and ensure you understand the terms of your lease agreement. Some of these questions include:

• What will happen in the event of a worst case scenario? It can be helpful if your lease agreement includes flexible terms in case of an unexpected scenario, such as bankruptcy or a buyout.
• How long will you need the space? It is smart to think well into the future when negotiating the terms and length of your lease agreement.
• Do you have plans for expansion in the near future? Expanding your business could be great for your company, but it is important to consider how the leased space will work for you during periods of growth.
• What type of lease is best for your business? There are different types of commercial leases, and they could mean different things for your company. It is smart to know what you are signing.

If you are able to negotiate the terms of your commercial lease, it would be smart to include terms that will allow for contingencies and setbacks. Owning a business is unpredictable, and it can be helpful to ensure that your lease includes flexible terms.

What do you need to protect your company?

Lease disputes can be both complex and costly for your company. Avoiding lease-related complications can be as simple as carefully reviewing the terms of your contract before you sign or negotiating beneficial and practical terms.

If you are considering leasing space for your business, you may find it beneficial to seek a complete evaluation of your options in order to better understand how to shield your interests as you move forward with this process.

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In Los Angeles and other parts of California, real estate experts are generally optimistic about the market. However, in the San Diego area, the market for buildings where commercial leases are available has especially turned positive. Still, the one area that continues to struggle is retail.

According to a university forecast that was recently released, the recent tax changes have made commercial real estate even more attractive. The reason for this is that pass-through income that goes to investors has received more liberal treatment in the tax law. The same is true for deductions based on corporate-owned structures’ values. Investors are now taking advantage of the opportunity to get back into real estate more aggressively due to these changes.

The outlook for industrial buildings has dropped a little since June but is still deemed to be positive. However, real estate institutions, developers and lenders are more pessimistic about retail ever since the new tax law was approved by Congress. Even though the holiday season last year was generally strong for purchases made in stores, too much space for retail is available. In light of this, experts expect restructuring to continue to take place in 2018.

Commercial real estate remains a potentially lucrative area for investors in Los Angeles and other parts of the Golden State. However, failure to navigate a deal correctly may end up costing the investor money, time and energy. In some cases, a mistake may derail a deal altogether. Fortunately, a qualified real estate attorney can provide the guidance needed to successfully purchase properties featuring income-generating commercial leases.

Source: sandiegouniontribune.com, “Commercial real estate recovery extending 3 years but retail retrenching, survey shows“, Roger Showley, Feb. 17, 2018

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As a California business owner, there are many legal issues you must address in order to ensure your company does not face financial harm from various complications. One of these is the matter of insurance. Businesses need various different types of insurance to protect certain aspects of their operations. It is prudent to seek a professional evaluation in order to understand which types of insurance are best for your individual business.

Insurance coverage is a way to minimize the financial risks assumed by your company. Insurance policies can shield your company from ramifications associated with everything from significant property damage to injuries suffered by an employee in a workplace accident. It is a specific way you can ensure the financial well-being of your business in the event of a contingency.

Various types of insurance

There is no one-size-fits-all solution to insurance for businesses. The types of policies you need depend on the type of business you have and your objectives. It is possible you may need more coverage than you realized. Some of the types of insurance policies that could benefit your business include the following:

• Workers’ compensation
• Property damage
• Builder’s risk
• Inland marine
• Glass or debris removal
• Business interruption
• Tenant coverage
• Crime
• Liability
• Fidelity bonds

Some types of insurance, such as workers’ compensation or property insurance, could be a requirement of your company. However, simply because a type of coverage is not a legal requirement does not mean that it could offer a measure of protection you may need in the future.

There is a lot of uncertainty involved with owning and operating your own business, regardless of the size of your company and the scope of its operations. Minimizing risks through sufficient and ample insurance coverage makes good business and financial sense. It can ensure that one emergency or unexpected setback does not cause irreparable damage to your business.

Protecting the interests of your business

It could be prudent for you to seek an evaluation of your case in order to understand the types of insurance that could protect your company. Business owners, real estate developers and various other parties, such as large corporations, could benefit from regular assessments of their changing insurance needs.

From preventing lapses in coverage to fighting denied claims, you do not have to deal with insurance matters on your own. When there is much at stake, you would be prudent to take quick action to secure the information and protection you need for the benefit of your business.

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Investors recently purchased an office complex in California for $136 million. The purchase occurred in the area of Palo Alto, which is not far from Los Angeles, and remains a popular spot for the purchase of real estate properties featuring commercial leases. The complex that was recently bought goes by the name of Embarcadero Place.

The recently purchased office complex, which features four buildings, spans 197,000 square feet. From a price standpoint, this sale was the second big Palo Alto office property purchase to take place in January. Earlier in the month, a buyer spent a total of $138 million on a brand-new office building spanning 64,000 square feet. A Visa technology unit occupies this second property.

Right now, a rapid land grab is taking place in the desirable Palo Alto region. Investors are striving to get their hands on any property available in this area due to the tech startup culture that was born there. In addition, the area has a downtown that is bustling, and Stanford University also has a strong influence there.

Making a commercial real estate purchase can understandably be an exciting move, as being able to offer commercial leases to businesses means more money in one’s coffers. However, the process can also be a major disappointment if the proper steps are not taken from day one. A qualified attorney in Los Angeles can help with navigating the complex process to make sure that no important detail is missed from a legal standpoint. The attorney’s goal is to ensure that one’s best interests and rights are both protected in the commercial real estate deal.

Source: mercurynews.com, “Investors grab Palo Alto office park for $136 million“, George Avalos, Jan. 26, 2018

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Purchasing and managing real estate properties in Los Angeles is a lot of work. It can be rewarding if a property that an investor owns offers revenue-generating commercial leases. But the process can still be overwhelming. A few tips may help real estate investors to avoid making common mistakes when making their investments.

First, looking at a potential property’s replacement costs, projected growth and rental rates is important. Considering the other area properties that will compete with the potential one is also a wise move. A competitor may prevent an aspiring investor from obtaining the rent levels he or she needs to make a potential property profitable long term.

Another noteworthy consideration is whether to hire a property manager to handle the administrative aspect of owning a property and having tenants. In many cases, hiring such managers makes fiscal sense. Qualified managers can help with leasing, looking for tenants, collecting rents and even handling evictions as needed. Still, investors will lose a percentage of their profits for these services.

Finding real estate properties that offer commercial leases and have major potential can be a major challenge for investors today. This is partly due to the fact that high prices for properties are driving many buyers to purchase new property types or to search for real estate in secondary markets. Trying to navigate the legal aspects of a purchase on top of the financial aspects can understandably be confusing. Fortunately, an attorney in Los Angeles can provide the guidance needed to ensure that an investor’s goals are pursued successfully in the Golden State.

Source: forbes.com, “Avoid These Four Common Commercial Real Estate Investing Mistakes“, Michael Episcope, Jan. 5, 2018

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The new tax law is a major home run from a financial standpoint for Los Angeles investors with high net worth. As a result, more investment in real estate properties where businesses can take advantage of commercial leases is anticipated in 2018. Investors are expected to benefit from the tax law for a number of reasons, with a tax deduction being one of the biggest ones.

One of these benefits is a 20 percent tax deduction for business income that stems from U.S. pass-through entities. This generally applies to real estate owners who have LLCs or partnerships. It also applies to those who invest in both private and public real estate funds.

Under the United States’ new law, individuals with high net worth who invest in commercial real estate can experience significant savings. In essence, these investors may reduce their investments in real estate to a tax rate of 29.6 percent — 10 points less than the rate back in 2017. The deduction is slated to expire in December of 2025.

With the commercial real estate industry expecting to benefit from the new tax law, an increasing number of investors and would-be investors may begin to take real estate investing more seriously in 2018. Of course, this may lead to more competition among those interested in offering commercial leases that will benefit their bottom lines over the long haul. Just as figuring out the real estate industry can be complicated, understanding the legal aspects of a deal may quickly become overwhelming. Fortunately, an attorney may provide the guidance needed to navigate a potentially lucrative real estate deal in the Los Angeles area.

Source: nreionline.com, “New Tax Laws Likely to Increase HNW Investment in Real Estate“, John Egan, Jan. 24, 2018

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A private real estate brokerage recently arranged a major property sale not far from Los Angeles. An office building ended up being sold for more than a whopping $143 million in Beverly Hills. This was the biggest commercial deal in the area during the last part of 2017 and offers commercial leases.

The office building was erected back in 1971. It stands 12 stories high and sits on nearly an acre close to Beverly Drive and Rodeo Drive. The commercial real estate property is currently 98 percent leased.

The buyer of the property seized the chance to buy this office asset, as these types of assets are rarely available in the area. The area where it is located features several hotels, restaurants and retailers that sell high-end items. The real estate assets in the area, known as the golden triangle, are known for offering value to investors long term. The buyer of the office asset plans to complete some renovations at the property, which will help with maximizing the income it produces and further solidifying its long-term value.

Claiming commercial leases in highly desirable areas are the dreams of many business owners. However, not all leases are equal. Failure to read through a lease or negotiate one effectively before signing it can have negative consequences financially for a business owner. Fortunately, an attorney in Los Angeles can help with reviewing and negotiating a lease to ensure that the business owner’s rights are not violated and that the terms of the lease are personally favorable in the months and years ahead.

Source: bisnow.com, “Madison Partners Arranges $143.6M Sale Of Office Building In Beverly Hills“, Joseph Pimentel, Jan. 2, 2018

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A metals company tenant is in the process of relocating to Corona from the Orange County area, both of which are not far from Los Angeles. Its new location appears to be a desirable one among companies that use industrial and commercial leases. The metals business, called Sunshine Metals, Inc., has entered an eight-year lease at the property, which spans more than 68,000 square feet.

The property offers more than 10,000 square feet of office space that is recognized as being high in quality. In addition, the property has six loading doors that are dock high, along with 2,000 power amps. Furthermore, the metals company will be able to take advantage of the property’s high pile storage system, a 1,000-square-foot mezzanine and a showroom.

The space is located on a lot that spans more than 157,000 square feet. The lease’s total value is about $4 million. Sunshine Metals decided to move to the Corona property because it was recently renovated, so it has upgraded amenities. In addition, the site offers convenient access to various parts of Southern California as well as the Long Beach and Los Angeles ports. At the same time, the prices here are between 20 percent and 30 percent lower than those in the Orange County area.

Signing commercial leases can be exciting for companies that have found the seemingly perfect properties for operating their businesses. However, failure to understand a lease before signing on the dotted line may cause unforeseen monetary problems down the road. An attorney in Los Angeles can help a business owner to review a lease as well as negotiate it to ensure that the lease’s terms are favorable for him or her long term.

Source: inlandempire.us, “Sunshine Metals, Inc., Relocating to Corona“, Jan. 10, 2018

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