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

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A group of real estate advisors in California recently announced that their company had recently sold a commercial building that is currently being leased to Starbucks. The coffee giant was the only tenant in the new-construction building that was sold in Southern California. The buying and selling of properties featuring commercial leases can certainly be exciting in Los Angeles and elsewhere, as these activities benefit the local economy as a whole.

The Starbucks building that was recently sold is located in Hesperia, a city in San Bernardino County. The building was sold for $3.19 million, which represents a 4.36 percent cap rate and a per-square-foot price of $1,595. The cap rate achieved is a record low for a Starbucks single-tenant building in California’s High Desert area. The per-square-foot price is also a record high in Hesperia for a real estate sale involving a single tenant.

The drive-thru property spans 2,000 square feet and sits on a total of .81 acres. Built in 2017, the property is a winner due to the fact that it is highly accessible. A pylon sign that will be visible from Interstate 15 will soon be built, and about 108,000 automobiles that move along the interstate each day can easily stop at the coffee shop. A private investor was the purchaser of the Starbucks building.

Southern California remains a promising location for selling and buying properties featuring commercial leases. However, a deal may end up failing if it is not approached in the proper way. A qualified attorney in Los Angeles can provide the guidance needed to successfully navigate a commercial real estate deal so that a buyer or seller can achieve his or her financial goals in the Golden State.

Source: inlandempire.us, “Sale of Brand New Single-Tenant Starbucks in Hesperia“, Feb. 27, 2018

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Alphabet, the parent company of Google, has been active in the office space arena recently. In fact, it has added office space much more quickly than other Bay Area technology companies. Like Alphabet, other companies in Los Angeles and other parts of California can take advantage of commercial leases to expand their business operations.

In Alphabet’s case, the tech giant now leases or owns commercial real estate that is equivalent to a total of 14 San Francisco Salesforce Towers. In other words, the company spans nearly 20 million square feet. This means that its footprint is nearly 40 percent bigger than that of Apple.

Facebook is in third place with a more than three million square feet. However, this social media giant is ready to expand this by half with a brand-new campus in Menlo Park, and it also has projects in Fremont and San Francisco. The largest division of Alphabet, Google, employs over 34,000 individuals.

The challenge that many startups face today is competition from the likes of Google, not only on the business front but also on the commercial real estate front in Los Angeles and other parts of the Golden State. Many startups are having trouble securing commercial leases, as landlords might be more apt to enter into contracts with established firms, which can sign lengthier leases or even purchase their properties down the road. However, with persistence and financial preparation, startups can still secure good leases. Before they sign on the dotted line, though, seeking the help of an attorney may be a wise move to make sure that the lease agreements truly reflect their wishes and needs long term.

Source: San Francisco Chronicle, “Google’s Bay Area real estate empire equivalent to 14 Salesforce towers“, Wendy Lee, Feb. 23, 2018

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California landlords must conduct themselves in a specific way to avoid getting into legal trouble. Today, we will take a look at some of the top legal mistakes that landlords should be aware of. This way, they can avoid making them. 

Many mistakes relate to treating tenants poorly or not being upfront with your information. Never forget to give out necessary disclosures. Additionally, do not ask your tenants questions that they (or others) could construe as discriminatory. You should not disregard a tenant’s right to privacy, either, no matter how justified you think it may be at the time. Likewise, you cannot keep security deposits unless you provide an itemized list of deductions for damage you fixed. 

Always make good on your side of a leasing agreement. You cannot refuse repairs within a certain limit. You cannot fail to provide a safe environment. This can include making sure that your building is up to fire code safety and has a safe evacuation plan. You cannot ignore the rules of eviction, and you cannot improperly dispose of abandoned property. It is also important to have adequate insurance coverage. Failure to provide this for the sake of attempting to save money can backfire on you. 

Committing any of these mistakes can lead to a serious legal headache for you. If you are curious to learn more about landlord tenant laws and disputes, consider visiting our web page. You can read more about the responsibilities that both parties hold. You can also read about some of the legal repercussions if they are not upheld. 

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