Prices, competition, barriers to entry and a poor infrastructure for transportation are among the elements that may discourage some commercial investors in California. There is also growing concern over availability of water; although, technologies are being developed to help deal with this. Despite these challenges, Southern California remains an attractive commercial real estate market.
A strong economy and a large population, including a growing tech industry, are both attractive elements of the region for commercial real estate investors. Other attractions include tourism and foreign direct investment — California is in 23rd place on the Opportunity Index. Furthermore, the climate and beaches of Southern California make it particularly attractive to many potential employees. Silicon Beach is Southern California’s answer to Silicon Valley.
Southern California’s growth is happening slowly and steadily in a way that makes it unlikely that the region is currently in a real estate bubble. Lenders also tend to look carefully at deals. The properties that are having the most success are those that are practical and have all necessities in place. Overall, it is anticipated that, as was the case in 2018, commercial real estate investment in Southern California will show slower but steady growth.
An entrepreneur who is hoping to buy or sell commercial property in Southern California may want to consult an attorney. Even experienced investors may benefit from an attorney’s assistance. The process of buying or selling can be complex, and errors could delay or compromise a sale. Legal counsel could also help with various other issues, such as disputes with tenants or business partners.