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Los Angeles Real Estate Law Blog

Buildings with commercial leases have positive outlook

In Los Angeles and other parts of California, real estate experts are generally optimistic about the market. However, in the San Diego area, the market for buildings where commercial leases are available has especially turned positive. Still, the one area that continues to struggle is retail.

According to a university forecast that was recently released, the recent tax changes have made commercial real estate even more attractive. The reason for this is that pass-through income that goes to investors has received more liberal treatment in the tax law. The same is true for deductions based on corporate-owned structures' values. Investors are now taking advantage of the opportunity to get back into real estate more aggressively due to these changes.

Robots may affect commercial leases, buying and selling in future

Thanks to the advent of technology, machines may end up dictating real estate's future in Los Angeles and other parts of California. After all, start-up real estate companies are trying to pinpoint new ways of selling not only residential property but also properties featuring commercial leases. This may result in cost savings that will benefit buyers and sellers as well as business owners interested in leasing spaces in commercial buildings.

A company in Silicon Valley, known as Zenplace, utilizes a tablet for renting hundreds of properties throughout the northern part of the state. The company has made the whole leasing process more efficient so that the process takes between 15 and 20 minutes instead of days or even weeks. A real estate agent who is licensed essentially controls a robot remotely so that prospective buyers can tour a property with the robot's help, for example.

Tips may help with negotiating commercial leases correctly

A lease governs a tenant's and landlord's entire rental relationship. This includes what both sides' duties are, the rent amount and what should happen if either side fails to comply with the terms of the lease. For this reason, understanding how leases work, especially commercial leases, is critical for aspiring tenants in Los Angeles.

Business owners who operate retail establishments and are looking for commercial leases may benefit from insisting upon a type of provision that will prevent their landlords from renting any space near them to their competitors. They may also want to spell out any and all conditions under which they can break free from their leases, as well as what the notice requirements are. Furthermore, if a dispute arises, how will it end up being resolved? Detailing this in a commercial lease can be advantageous as well.

Office park featuring commercial leases recently sold for $136M

Investors recently purchased an office complex in California for $136 million. The purchase occurred in the area of Palo Alto, which is not far from Los Angeles, and remains a popular spot for the purchase of real estate properties featuring commercial leases. The complex that was recently bought goes by the name of Embarcadero Place.

The recently purchased office complex, which features four buildings, spans 197,000 square feet. From a price standpoint, this sale was the second big Palo Alto office property purchase to take place in January. Earlier in the month, a buyer spent a total of $138 million on a brand-new office building spanning 64,000 square feet. A Visa technology unit occupies this second property.

Investments in buildings with commercial leases may soon increase

The new tax law is a major home run from a financial standpoint for Los Angeles investors with high net worth. As a result, more investment in real estate properties where businesses can take advantage of commercial leases is anticipated in 2018. Investors are expected to benefit from the tax law for a number of reasons, with a tax deduction being one of the biggest ones.

One of these benefits is a 20 percent tax deduction for business income that stems from U.S. pass-through entities. This generally applies to real estate owners who have LLCs or partnerships. It also applies to those who invest in both private and public real estate funds.

What type of insurance does your business need?

As a California business owner, there are many legal issues you must address in order to ensure your company does not face financial harm from various complications. One of these is the matter of insurance. Businesses need various different types of insurance to protect certain aspects of their operations. It is prudent to seek a professional evaluation in order to understand which types of insurance are best for your individual business.

Insurance coverage is a way to minimize the financial risks assumed by your company. Insurance policies can shield your company from ramifications associated with everything from significant property damage to injuries suffered by an employee in a workplace accident. It is a specific way you can ensure the financial well-being of your business in the event of a contingency.

Mistakes easy to make when offering commercial leases

Purchasing and managing real estate properties in Los Angeles is a lot of work. It can be rewarding if a property that an investor owns offers revenue-generating commercial leases. But the process can still be overwhelming. A few tips may help real estate investors to avoid making common mistakes when making their investments.

First, looking at a potential property's replacement costs, projected growth and rental rates is important. Considering the other area properties that will compete with the potential one is also a wise move. A competitor may prevent an aspiring investor from obtaining the rent levels he or she needs to make a potential property profitable long term.

Commercial leases in Corona may offer promising opportunities

A metals company tenant is in the process of relocating to Corona from the Orange County area, both of which are not far from Los Angeles. Its new location appears to be a desirable one among companies that use industrial and commercial leases. The metals business, called Sunshine Metals, Inc., has entered an eight-year lease at the property, which spans more than 68,000 square feet.

The property offers more than 10,000 square feet of office space that is recognized as being high in quality. In addition, the property has six loading doors that are dock high, along with 2,000 power amps. Furthermore, the metals company will be able to take advantage of the property's high pile storage system, a 1,000-square-foot mezzanine and a showroom.

Commercial leases offered at recently sold office building

A private real estate brokerage recently arranged a major property sale not far from Los Angeles. An office building ended up being sold for more than a whopping $143 million in Beverly Hills. This was the biggest commercial deal in the area during the last part of 2017 and offers commercial leases.

The office building was erected back in 1971. It stands 12 stories high and sits on nearly an acre close to Beverly Drive and Rodeo Drive. The commercial real estate property is currently 98 percent leased.

Choosing commercial leases requires understanding of zoning

Laws governing commercial zoning dictate what type of activities businesses can conduct in certain areas. They also determine the categories of businesses that may occupy particular areas. For this reason, paying attention to zoning is critical when looking for commercial leases in Los Angeles.

A couple of nuggets of information may be helpful for avoiding trouble with commercial zoning when looking for leasing opportunities. First, sometimes a brand-new zoning law is implemented, but a tenant who existed in a location prior to the law's implementation may still legally continue with the property's previous use. After this tenant vacates this property, any new occupant cannot continue the previous use, which is known as non-conformance.

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