Goodkin & Lynch, LLP

TF 800-628-2898

PH 310-853-5730

Commercial leases expected to be in more demand nationwide

The majority of investors throughout the United States, including in Los Angeles -- 72 percent, to be exact -- are continuing to seek out new investment opportunities in real estate this year. Institutional investors in 2017 are hoping to devote a total of $62 billion to investments in commercial real estate. This means opportunities for businesses interested in commercial leases are expected to increase.

Many investors in the United States are interested mostly in industrial properties. This is due to the demand for these properties as a result of the growth of the e-commerce industry. Meanwhile, multifamily properties are in second place in terms of popularity among investors. The third most-popular type of property is self-storage, followed by student and senior housing. The properties receiving the least amount of attention include office, retail and medical office properties.

In addition, investors are expected to put the most of their real estate investment capital in core properties followed by value-added properties, at 33 percent and 27 percent, respectively. In addition, investment capital will go to opportunistic investments and debt products, at 20 percent and 8 percent, respectively. Finally, capital is slated to go to foreign investments at 7 percent and real estate securities at 5 percent.

With commercial real estate looking promising nationwide, now may be a beneficial time for businesses interested in expanding to start exploring new areas for commercial leases. Negotiating commercial lease agreements, however, can be tricky. An attorney in Los Angeles can help with reviewing and negotiating leases to avoid any costly pitfalls in the complex commercial leasing process.

Source: ai-cio, "Kingsley: Real Estate Remains Most Attractive Asset Class for 2017", April 27, 2017

No Comments

Leave a comment
Comment Information
ABA | American Bar Association | Defending Liberty Pursuing Justice ASCDC | Association of southern california defense counsel LACABA | Los Angeles County Bar Association | Organised 1878 | Incorporated In California 1953 PABA | Philippine American Bar Association Super Lawyers(R)