In Orange County, California, office rent over the past two years has grown at the highest rate seen in the United States — 23 percent. A major reason for this growth is that technology firms are being forced to expand into downtown areas and submarkets near core markets due to a lack of space in the core markets. This may spell good news for those offering commercial leases in downtown Los Angeles.

Submarkets as well as downtown areas featuring skylines are becoming more in-demand among tech companies versus the traditional brick buildings that they have historically preferred. This is quickly creating new opportunities for investors in commercial real estate in these downtown areas and submarkets. The best part about this trend is that tech companies are willing to pay premium prices for office spaces in these locations.

From the perspective of an investor, technology markets that are appealing to occupiers by offering growing high-technology labor pools and low rents for office space are the ones most likely to grow in the immediate future. Still, the business cycle naturally experiences swings. As a result, firms that have realistic projections for growth and realistic valuations, along with practical exit strategies, will help to guard investors against losses.

The commercial real estate world throughout the United States is constantly changing, but right now, real estate investors interested in offering commercial leases in submarkets and downtown areas may want to take advantage of deals in these areas while they are still available. Still, navigating the purchase of commercial real estate can understandably be tricky. An attorney in Los Angeles can provide the guidance necessary to seal the deal in a manner that should benefit an investor’s bottom line long term.

Source: worldpropertyjournal.com, “Orange County California Enjoys Highest Office Rent Growth in U.S. Over Last Two Years at 23 Percent“, Michael Gerrity, Nov. 16, 2017

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Technology appears to be changing the face of modern real estate investing today in the United States, including in Los Angeles. In fact, when it comes to the retail sector, technology has led to a major shift to online retail from its land-based counterpart. As a result, warehouse commercial leases are beginning to draw increasing attention compared with retail building commercial leases.

Consumers in general are starting to purchase many more items online. As the demand for online transactions grows, businesses are needing less merchandise in stores and more warehouse space. In fact, Blackstone — the biggest real estate investor on the globe — has bought hundreds of warehouses totalling more than 400 million square feet of space during the past seven years in several countries.

Los Angeles is especially benefiting from the increased emphasis being placed on technology in real estate. Job creation is one of the impacts of technology, with job opportunities booming in this part of California as well as in other states. Blackstone said it is continuing to try to anticipate where real estate technology is moving and then put capital in that area.

Whether trying to take advantage of retail or warehouse commercial leases as a business owner, the process of entering a lease agreement can be tricky. Unfortunately, overlooking essential details can end up a business owner time, money and even his or her business goals depending on the nature of the mistake. An attorney in Los Angeles can help to ensure that a business owner’s particular aims and best interests are reflected in a commercial lease before he or she signs on the dotted line.

Source: yahoo.com, “How technology has shifted the commercial real estate landscape“, Julia La Roche, Oct. 7, 2017

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New ventures are exciting. The chance to build something literally from the ground up and watch it grow and thrive can be an enticing reason to start a real estate project. However, before you take that first step, you need a thorough understanding of the potential risks involved.

You may need to conduct a great deal of research and due diligence to understand the risks associated with a project. Depending on what you discover, you may decide to abandon the project or mitigate the risks and move forward.

Your project dictates some of the risk

The projects themselves can be high risk or low risk or anything in between. The following are examples of the two extremes:

• A high-risk project often does not have occupants lined up for the completed project. You speculate that the demand will be there when the project is complete.
• A low-risk project often already has one or more occupants lined up. In fact, you may be building the structure specifically for those occupants.

Obviously, your risk increases as you reach the speculative project level.

Pre-project issues

To some extent, all projects are high risk before all of the pieces are in place. To minimize, or at least understand, the risks associated with the project, you may need the following:

• Construction and other permits
• Market analyses
• Feasibility studies
• Infrastructure improvements
• Acquisition of land
• Right to purchase needed land
• Plans for the site, building and development
• Surveys
• Environmental assessments

Issues regarding any of the foregoing could potentially delay, if not derail, your project. In order to increase the chances of success, further research may be required to ensure that you receive everything you need to move forward.

Zoning issues

One area that often hangs up many projects is in zoning. Obtaining a land use permit can often make or break a project. You will more than likely not receive your construction financing until you secure this permit. Delays could come from many sources. You could spend a significant amount of time, and money, resolving the issues causing the delays.

Construction issues

Anyone who has ever been involved in a construction project knows that delays are a distinct possibility. Even so, the risks during construction are now less than they were before. If you accounted for potential delays, supply issues and the weather, among other things, you are probably ready for those risks.

Occupancy issues

More than likely, if you did not already have tenants or buyers lined up for the project, they begin in earnest at some point during the construction. In order for the project to succeed, you need to fill the space. Marketing becomes crucial at this point.

Business and legal issues

After considering all of the above, you may decide to move forward with the project. Before you do, you may want to protect your interests by putting your agreements in writing and understanding all laws applicable to the project. Whether it’s the land purchase, obtaining permits or financing or negotiating leases, you may benefit from having a real estate attorney in your corner. One risk that you don’t want to take is that your contracts and other agreements fail to protect you as you enter into a new venture.

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California, including the area of Los Angeles, remains a hot spot for real estate investors in the commercial sector. A particular area that is drawing increasing attention is Palm Springs, where commercial leases can benefit both businesses and the community as a whole. Part of the draw of this area is the good quality of life it is purported to offer.

Greater Palm Springs provides world-class fitness, wellness and health care, featuring a wide range of activities, such as yoga and bicycling. In addition, it has three hospitals along with other facilities. The area is also known for its strong culture and arts focus, with multiple museum locations, community theaters, music festivals and a film festival.

Creativity is even permeating the area’s business community, with innovating being encouraged in this area of California. A huge perk for business owners in the area is that the availability and cost of commercial real estate properties have received high rankings among companies that are looking to expand or relocate, as well as among investors. The transportation infrastructure features a rail service, three airports and a zone for foreign trade as well, only adding to the appeal of the area.

California continues to offer many opportunities for those interested in providing or taking advantage of commercial leases thanks to the many shopping centers and other types of properties available. However, failure to understand how leases work can cause those interested in a leasing relationship to make ill-informed decisions with negative long-ranging consequences. An attorney in Los Angeles can help to ensure that one’s rights and wishes are protected when dealing with leases in the Golden State.

Source: palmspringslife.com, “The Pursuit of Happiness“, Shelly Cannon, Oct. 4, 2017

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Legal marijuana growers in California, including in Los Angeles, are causing rents and prices for industrial properties to increase exponentially. In fact, in some parts of Sacramento, prices are jumping to never-before-seen heights. This may be good news for those interested in selling commercial real estate or offering commercial leases.

According to commercial real estate brokers, light-industrial buildings and warehouses are selling for double the typical asking prices. In addition, rents have jumped to four to five times the normal rent prices in a particular area on the southeastern part of Sacramento. The heating up of this market is leading up to recreational marijuana’s legalization next year in California.

Voters in California approved marijuana’s legalization in 2016 with Proposition 64. However, counties and cities are retaining a lot of say in where and how legal marijuana may be grown. Sacramento’s adoption of marijuana-growing ordinances makes it a unique major urban area in California — one that is drawing a large number of businesspeople, even those from other states who want to own legitimate marijuana-growing businesses. A real estate bubble may occur in several years, but the value of properties may be sustained.

The idea of higher rents and prices may be appealing for property owners who are interested in selling their properties or offering commercial leases. However, navigating commercial real estate transactions can be tricky, with mistakes potentially costing a property owner or investor a deal. An attorney in Los Angeles can strive to ensure that one’s goals are ultimately achieved in today’s high-demand, competitive real estate market.

Source: sacbee.com, “Pot growers take over warehouse space in Sacramento”, Hudson Sangree, Oct. 9, 2017

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A shopping center in Pleasant Hills, California, was recently sold for a whopping $5.3 million. A private investor purchased the center, which features three stores, including a Starbucks. The purchase of such buildings, where small businesses can take advantage of commercial leases, can help to stimulate local economies throughout the state, including in Los Angeles.

Besides Starbucks, stores that have called the shopping center their home include a Pier 1 Imports, a Party City, a T-Mobile and an Aspen Dental. However, Starbucks really drove the re-development of this site, which took 14 months to complete after the property was purchased in June of 2016. Starbucks had been searching for an area to locate in the Pleasant Hills area for about three years before purchasing the shopping center.

At the time of its 2016 purchase, the property was bought for just $1.5 million. The private real estate investor who just bought the property for $5.3 million had sold a California vineyard to buy the center. The center is now bringing brand-new retailers to the local area in addition to allowing old ones, such as Aspen Dental, to remain there.

Purchasing commercial real estate properties in Los Angeles and other parts of California can be exciting, and the properties often generate regular income for their investors. The community also benefits from these purchases, as they prevent vacant buildings from becoming eyesores. However, navigating a commercial real estate deal can be a challenge, and commercial leases need to be reviewed and negotiated before being signed. An attorney can provide the necessary guidance with all of these types of transactions so that one’s goals can ultimately be achieved in the Golden State.

Source: triblive.com, “Pleasant Hills shopping center sold to California real estate investor“, Stephanie Hacke, Oct. 22, 2017

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California readers know that trespassing is illegal, but there are circumstances in which a person could actually obtain certain rights to use property that belongs to another party. This confusing concept goes by the name of adverse possession, and you may find it beneficial to understand how this process works.

In certain circumstances, a person who has been trespassing for an extended period of time may actually obtain the right to stay on the property. In order to qualify for adverse possession, a person must be using the land exclusively and openly, without attempting to hide it. The rights granted to a person through adverse possession differ on a case-by-case basis and depend on the unique circumstances of the individual case.

Who should pursue an adverse property claim?

One of the most common examples of the need to file an adverse property claim is when a person inherits or comes into possession of a piece of land that comes with very little documentation. This often happens when a person receives property from a family member in a will or through a traditional chain of possession.

An adverse possession claim could also be appropriate when a person who is not the property owner uses a piece of land for an extended amount of time, typically for several years.

A valid adverse possession claim

There are certain requirements a person must meet in order to qualify for an adverse possession claim. These include the following:

• The claimant must be occupying, regardless of whether or not he or she knows it is actually trespassing.
• The actual act of trespassing must be fairly obvious.
• The claimant must be treating the land as if he or she owned it.
• The trespassing must occur for an unbroken, extended period of time, unshared with any other person.

Whether you are the one who wishes to have legal claim to a piece of land you are using or you have concerns about a person trespassing on your property, you could benefit from a complete explanation of your legal rights and the options available to you.

The terminology associated with adverse possession and trespassing is confusing and difficult. Whether you are considering initiating an adverse claim or simply want a better explanation of your property rights, you would be wise not to delay in seeking an evaluation of your case. When it comes to your entitlements, rightful access and use of property, there is no time to lose.

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A realty company in California recently closed a brand-new deal at a property known as the old Garland Center. The data center part of this property has thus been renamed the West 7 Center. Evocative, an internet company, signed a lease for a whopping 42,000 square feet at this piece of property, which is located in the downtown area of Los Angeles. These types of commercial leases can be mutually beneficial for both the lessor and lessee.

Evocative provides the secure internet infrastructure that its clients need. Thanks to its recent signing of a long-term lease, it will be able to access two data centers at West 7 Center. It will offer a capacity of 2.5 megawatts.

The West 7 Center will actually be the company’s first location for a data center in Los Angeles. The firm already possesses data centers in other parts of California, such as San Francisco, Silicon Valley and Emeryville, as well as in Las Vegas. The property has office space totaling 450,000 square feet on nine floors, and its data center — the biggest one in the downtown area — features more than 280,000 square feet.

Commercial leasing can be a lucrative area of real estate for investors. However, figuring out how to handle commercial leases can be tricky for both investors and the tenants interested in leasing their properties. An attorney in Los Angeles can help to ensure that investors’ best interests are protected when putting together and negotiating leases. Likewise, an attorney can make sure that business owners who are interested in becoming tenants at a commercial property are not taken advantage of in the process.

Source: therealdeal.com, “Internet company takes space at Rising Realty’s West 7 Center“, Natalie Hoberman, Sept. 12, 2017

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In Southern California, the real estate market is highly competitive. This is especially true for those interested in purchasing properties in the Los Angeles area that would enable them to offer in-demand commercial leases. A couple of tips may help with navigating commercial real estate deals in the Golden State.

First, financial qualification can help an aspiring buyer and his or her company to succeed when the perfect opportunity comes. A bank might have already verbally told a buyer that it is willing to lend this buyer money to purchase a commercial property, but this is not enough. Obtaining a pre-qualification letter that includes a comprehensive review of the buyer’s current financial snapshot is essential.

Another essential move is to remove contingencies. For instance, some buyers might actually have to sell their own properties before they can buy new ones. If this is the case and they include these contingencies with their purchase offers, their offers may end up getting overlooked for those of other buyers who are immediately ready to buy. In addition, having a liquid down payment can increase a buyer’s chances of having his or her offer approved.

Commercial real estate in Los Angeles offers great promises, but it can also be a big headache for those unfamiliar with the buying process. Even those who are familiar with it may run into new issues with every deal, as no two deals are the same. An attorney can help with navigating these types of deals so that one’s goal of being able to offer commercial leases in California will ultimately be realized.

Source: ocregister.com, “4 ways to win a commercial real estate deal“, Allen Buchanan, Sept. 2, 2017

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The state of California, including Los Angeles, continues to offer a wellspring of opportunities for those interested in mixed-use properties. In San Francisco, construction is expected to soon start on a new mixed-use project that will stand six stories tall and feature residential, restaurant and retail spaces. Just a few important permits are necessary before the construction phase can begin and commercial leases are offered.

The area being developed was the site of a McDonald’s restaurant in recent years. Now, instead of seeing golden arches there, passersby will start to see a building that spans 150,000 square feet and features ritzier food and beverage options. Restaurants and retail shops will be on the ground floor, and there will also be 20 hotel rooms and 77 apartments sold at market rates. Three floors will also be dedicated to underground parking.

No formal schedule related to the beginning of construction currently exists. However, the developers of the site, known as 1380 California, currently have the majority of the permits needed to commence building, which will first include demolishing the old McDonald’s building. The project’s last design review took place on Sept. 20.

Business owners in Los Angeles may benefit from new opportunities to sign commercial leases in this area of the state. The right spots can help them to draw more customers and ultimately buttress their bottom lines. However, choosing the right spot is only half the battle, with the other half having to do with lease negotiations. An attorney can help with reviewing and negotiating a lease to ensure that one’s rights and best interests are protected before one signs on the dotted line.

Source: eastbaytimes.com, “Walnut Creek mixed-use project to push out old McDonald’s“, Sam Richards, Sept. 26, 2017

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