Deciding between renting and buying may seem challenging for business owners in Los Angeles. However, commercial leases might be the best options for setting up new businesses because they allow the business owners to move to new locations as needed. In addition, the terms of a lease are shorter than those of a mortgage, and leasing frees up valuable capital, which can then be used for other business purposes.
A management and investment firm in another state recently paid more than $17 million for a creative office facility in California. The building is located in the Redondo Beach area, not far from Los Angeles. The seller, which offered commercial leases at the property, received a generous profit from this sale.
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.
Multiple foreign investors have purchased hundreds of millions of dollars' worth of real estate properties in the Silicon Valley area. This may be good news for these investors, who may see their bottom lines rise over time as they offer lucrative commercial leases to business owners. It may also be good news for the community and other parts of California, including Los Angeles, which may continue to experience economic growth as a result of such purchases.
With a greater emphasis being placed on sustainability in Los Angeles and other parts of the Golden State, being green is becoming increasingly important in all areas of business, including in real estate. For this reason, the Institute for Market Transformation recently added multiple enhances to its Green Lease Leaders recognition program. It has collaborated with the Lawrence Berkeley National Laboratory and the Better Buildings Alliance of the U.S. Department of Energy on this initiative impacting commercial leases.
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.
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.
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.
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.
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.