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Los Angeles Real Estate Law Blog

Commercial leases possible with sale and leasebacks

A real estate brokerage in California recently completed a property portfolio sale and leaseback. The transaction took place in Rancho Cucamonga and Carteret, less than an hour from Los Angeles. With these types of transactions, property owners may sell their commercial real estate assets for quick capital and then do commercial leases with these assets, essentially leasing them back from the buyers.

In the recent sale and leaseback, the company CBRE purchased an industrial portfolio featuring three properties. The company said the transaction was complex and highly coordinated, considering the short time frame with which it had to work. The three properties total more than 139,000 square feet.

What should you know about adverse possession?

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.

Internet companies can take advantage of commercial leases

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.

Deals involving commercial leases can be tricky to win

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.

Urb-suburban draws attention among those with commercial leases

Nowadays, there is a push among the owners of office buildings and real estate developers to bridge the gap between urban life and suburban life. With this comes a new concept known as urb-suburban. By embracing this vibe, real estate investors in Los Angeles who are interested in offering commercial leases may experience levels of success they have never seen before.

The concept of urb-suburban describes the mixture of suburban offices in settings that are walkable and offer easy access to the types of amenities often seen in urban settings. These amenities include the likes of retail, restaurants, transit and housing. Industry experts said that developers and owners who do not embrace this concept may find it more difficult to justify brand-new projects or attract brand-new tenants.

Commercial leases feature certain important terms

Like other types of contracts, a commercial lease between oneself and a landlord may be negotiated. However, effective negotiation in Los Angeles starts with an understanding of the terms often included in commercial leases. These terms include destruction, enforcement and escalation clause.

An important clause to search for in a commercial lease is one that deals with destruction. This clause essentially makes it mandatory for a landlord to rebuild the property being leased if this property ends up being destroyed. The clause explains whether the tenant's rate will end up being abated and if tenant has the option of terminating the lease in the event the building is either partially or totally destroyed.

Commercial leases offered at recently sold The Gardens property

A retail property in the Los Angeles area recently sold for a whopping $22 million. The property was sold to a Los Angeles buyer, who was not immediately identified. Known as The Gardens, this retail property offers many opportunities for commercial leases.

CBRE ended up brokering the sale of the retail property. This particular property is more than 96 percent occupied and is near a casino and regional hospital. AU Zone Investments #2 LP was the seller, who reportedly sold the property because its portfolio includes heavy investments in retail, and it wanted to diversify its portfolio by branching out to other types of real estate assets.

The differences between express and implied easements

When purchasing, leasing or renting California property, it is essential to understand how any potential easement could impact your ability to use the property as you wish. Easements are a complex area of real estate law, and disputes can quickly end up in litigation when out-of-court settlements are not possible. Easements can affect both residential and commercial properties.

If you have an easement, it simply means that you have a legal interest in another party's property without possessing the property. An easement grants only limited rights, such as the right to walk or drive through privately owned property to get to a public place. Whether you have easement rights or you wish to understand if an easement could affect a property you wish to buy, you would be wise to understand the two main types: express and implied.

Logistics centers may be promisnig for offering commercial leases

Real estate in the Los Angeles area has been strong in past years and continues to be robust in 2017. One particular aspect of the commercial real estate market is logistics buildings. Thus, real estate investors interested in offering commercial leases may find a wellspring of opportunity in the City of Angels.

The Inland Empire area of Southern California features top-quality logistics buildings that experienced a rent jump of 4.7 percent year over year earlier this year. However, the Los Angeles market saw a jump of a whopping 9.2 percent. This information comes from CBRE, a commercial real estate investment firm.

Commercial leases in various real estate sectors appear promising

The state of California has the sixth-biggest economy in the world, with its gross domestic product being $2.5 million. The state's economy grew by more than 3 percent back in 2016, more than two times the 1.5 percent growth that the nation as a whole experienced, and more than any other state's growth rate. Owning real estate, which may also include offering commercial leases, is one area that is particularly hot right now economically in Los Angeles and other parts of California.

There are four commercial real estate sectors in California, all of which currently have varying outlooks. Right now, retail space is expected to see little net growth, if any. In fact, many retail properties may end up being redeveloped into mixed-use projects or enclosed shopping malls. Just like retail space, office space -- the second commercial real estate sector -- may not see much growth due to the abundance of these types of spaces at the moment.

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