California commercial real estate investors and owners might be interested in learning that Los Angeles has again made a strong showing in the commercial real estate market. For the third year in a row, L.A. has been ranked as the most attractive commercial real estate market in the U.S. and the Western Hemisphere.
According to a survey that was conducted by CBRE with 300 real estate investors, other major gateway cities in the U.S. also ranked highly in the survey. Dallas was ranked second behind L.A., followed by Seattle, New York, San Francisco, Houston, Washington and Atlanta.
The study’s authors attributed the strength of the commercial real estate market to economic growth, regulatory changes and tax cuts. While interest rates are expected to rise in 2018, 96 percent of the investors who participated in the survey indicated that they intend to invest during the year. As compared to their investments in 2017, 45 percent of the investors reported that they intend to increase their holdings in 2018. Out of the respondents, 19 percent reported that they believed that returns will exceed 9 percent, and 58 percent said that they believed returns would range from 6 to 9 percent.
Commercial real estate continues to show strong growth in Californiand in many other parts of the U.S. People who would like to invest in real estate and those who would like to sell or lease their properties may benefit by getting help from a business law attorney who has experience in commercial real estate matters. Attorneys may help by conducting due diligence and advising their clients about potential legal issues surrounding certain properties.