Businesses in California are finding it difficult to find industrial space according to a report released in recent weeks by a leading commercial real estate firm. A Colliers International study of commercial property trends in the Golden State reveals that Los Angeles has the lowest warehouse vacancy rate in the country. Only 1.6% of the city's 1 billion square feet of warehouse space is currently available, and companies looking for storage facilities in Orange County face an almost equally tight market.
Being a commercial real estate agent is a lot like being a professional golfer. This is because agents in California and elsewhere will be working for themselves but will also need a team to help them. This team will provide market research, help with marketing and provide other resources an agent needs to succeed. Like golf, it is important that real estate agents act with integrity at all times.
Commercial property can be appealing to anyone in California looking to either find the perfect spot for a business or make a profit renting out a desirable space. One of the most important pieces of information that perspective buyers want to know before investing in a commercial property is how much it's worth. There are several ways to accomplish this goal.
California real estate investors know the importance of doing due diligence before purchasing a property. One issue that may have a significant impact on the long-term value of a property is climate change. Climate and weather issues can trigger incidents that damage property and communities.
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.
California commercial real estate investors may want to consider modifying their strategies for staying on top of the market in 2019. While many investors may opt to continue to use what has worked for them in the past, others may have to use new methods to set up capital in order to address a volatile equity market, slow growth in the industry and trade disputes.
Making the decision to invest in commercial real estate in California or any other state can result in profits if wise investment decisions are made. However, it is important that investors recognize how the commercial real estate industry is changing. One significant change is the integration of blockchain technology.
When someone gets injured on a property, the owner of that piece of real estate is generally considered liable. Thousands of such premises liability cases are filed in court every year in California and throughout the rest of the country. In order for property owners to protect themselves, it's important that they prepare for as many potential liabilities as possible. While records show that personal injury cases on commercial properties have started to go down, they still cost owners a lot of money every year.
California investors may be curious about the potential of entering the commercial real estate market, especially if they've already been active in residential properties. There are a number of unique characteristics that can make the commercial property market particularly appealing to investors. Commercial leases are often long-term, reducing the level of effort needed to keep or find new tenants on a regular basis, even though the negotiation of any particular contract may require additional work. In addition, as commercial properties are often multi-unit, investors can receive several revenue streams from one property.
Investors or business owners who are looking for commercial real estate should be aware that the CRE industry is poised to undergo a transformation due to proptech. In 2017, $12.6 billion worth of venture capital investments were made in proptech, which is real estate technology. That amount was three times what was invested in 2015. There are several proptech companies that are highly funded and developing applications that could change building management and occupancy experiences.