Since drone technology is starting to change the real estate industry, California commercial property owners and managers may need to keep abreast of privacy and liability laws. Whether drones are being used on construction sites where commercial real estate development is underway or by retail establishments, owners and managers should make sure that the use of airspace is permitted. It might be necessary to get licenses, easements or another type of permission from other property owners.
In California, the preferred method for holding investment interests in real estate is through the use of an LLC because this form of ownership shields the owner of the LLC from personal liability and also provides the owner with pass-through tax treatment. This tax treatment means that the owner of the LLC is taxed only as an individual, and the LLC does not pay any corporate tax.
For California business owners and investors, commercial real estate may represent an opportunity to make a profit on available capital. However, it is important that those who are investing in commercial real estate for the first time understands what they are getting into. First-time buyers should be careful to assess the risk of a particular investment. Market trends and other variables could turn today's dream purchase into tomorrow's nightmare scenario.
California residents who wish to invest in a piece of real estate often set up a limited liability company to protect themselves and their earnings. The limited liability company insulates their personal property from any incidents that may befall their real estate venture, and there are tax advantages offered by this type of entity as well.
For investors in California who are looking to make the largest possible return on their capital, it may be worthwhile to look into real estate interval funds. These are a type of mutual fund that allow for larger returns because investors hold them for a longer period of time. Instead of being able to cash out on a daily basis, investors can only make one redemption per quarter.
California commercial real estate developers might be interested in a September 2016 survey that was conducted with 51 industry economists and analysts. The consensus among the participants is that the rate of commercial property vacancies is expected to remain low and might move lower, helping to boost rents and property prices.