Some banks in the Los Angeles area and other parts of the United States currently have concerns about the state of the economy, and for this reason, they are not eager to lend money to investors. This has created new opportunities for alternative lenders to step in and meet the needs of investors who need capital to purchase properties featuring commercial leases. In fact, these lenders have already raised significant amounts of capital for secondary real estate financing.
Many industries in Los Angeles and other parts of the country are increasingly focused on being environmentally friendly. Commercial real estate is no exception. For this reason, it is reasonable for investors to expect the market for properties featuring commercial leases to incorporate green technologies now and in the future.
Technology continues to transform the landscapes of many sectors of the economy in Los Angeles and elsewhere, and real estate is no exception. Specifically, augmented reality is expected to have an increasingly major impact on the market of properties featuring commercial leases. Here is a glimpse at what augmented reality is and how it may impact property owners in the years ahead.
Experts recently described the first few months of the year of 2019 as positive with regard to the market for non-residential properties. Part of the reason for this is that more investors are optimistic about the market for properties with commercial leases, in Los Angeles and elsewhere. Another reason for the positive view of the commercial real estate market is that people in general feel good about the United States' economic conditions overall.
According to experts, the market of non-residential properties is currently valued at $10 trillion. For this reason, investors who have been contemplating purchasing properties featuring commercial leases may be wise to jump into the real estate market this spring. Here is a look at a few ways in which investors in Los Angeles can figure out the values of the various commercial properties they are targeting.
Taking the plunge into the non-residential property industry in Los Angeles can most certainly be intimidating. The reason for this is that owning a property featuring commercial leases involves more than simply overseeing a physical building: it also involves managing people, and a business in general. However, a few tips may help new investors to navigate the world of property ownership.
Modern technology is altering the way in which investors look at the non-residential property market. For example, listing services on the World Wide Web highlights properties featuring commercial leases in a variety of markets. Investors in Los Angeles can therefore obtain a large amount of valuable information regarding commercial properties instantly. The problem is, though, that these listing services still exclude other important pieces of information that might impact how valuable a property is.
A brand-new generation of software platforms is changing the world of property investing. These new platforms can monitor energy and water use in buildings, for example. These applications, called proptech, offer promise to investors in Los Angeles who are interested in purchasing buildings with commercial leases, as they provide a new way of generating value for their tenants.
For investors in Los Angeles and elsewhere, measuring risk against opportunity is paramount. In the real estate market, investors are especially concerned with the increased risk they face due to climate change, as natural disasters cost damages totaling over $300 billion in 2017 -- a record. For this reason, investors who are interested in buying properties featuring commercial leases may want to more aggressively calculate climate risk as well as its potential effect on their property portfolios.
Recent financial headlines have called attention to the likelihood of a recession in the near future. Recessions have a tendency to precipitate real estate market declines. However, recent evidence points to the fact that these headlines may be false alarms, which is good news for those interested in investing in properties featuring commercial leases in Los Angeles.