The demand for office space has leveled off in most California markets, and vacant stores are a familiar sight in many parts of the state. While rents may be flat across the Golden State as a whole, they have risen by 25 percent in Pasadena over the last 12 months according to real estate brokers. Industry experts say that the demand for space is being fueled by Asian investment, and reports indicate that land in the city is being snapped up by developers sensing an opportunity.
Vacancy rates for Class B and Class C office space in Pasadena have fallen to just 6 percent, and even the beleaguered retail sector is showing signs of life. The business community has worked with city planners and lawmakers to establish Pasadena as an exclusive shopping and leisure destination, and analysts say that this cache helps to maintain the city’s reputation as a sound investment.
Commercial landlords in Pasadena have also benefited from the legalization of recreational marijuana in California. Los Angeles is the biggest market in the nation’s most populous state, and warehouses in Pasadena are being sought out by growers and distributors seeking access to it. Brokers report that legal marijuana has also sparked activity in the retail sector.
Time is usually of the essence when regional opportunities present themselves, and developers who are able to complete their projects quickly will generally reap the greatest rewards. Attorneys with experience in this area may be able to help keep commercial real estate projects moving by anticipating legal roadblocks, like zoning disputes or contractual issues, and taking steps to either avoid or address them. Attorneys could also seek to prevent stoppages or delays caused by permit problems or other regulatory issues.