When you purchase a new car, it usually comes with a number of added features, some of which may seem quite nonsensical. The same is true with commercial buildings. There are a number of features that buyers aren’t looking for and that will even push them away as they do not want to pay more for a property due to a strange and unwanted feature. Sometimes, sellers are confused by this. For instance, someone may have installed solar panels to make the property more energy efficient. In itself, this is a fantastic idea, until it is noticed that those solar panels have taken up 10 parking spaces. While the previous occupant may have had a good carpool system in place, the new owner only sees the loss of 10 parking spaces. So which are some of the upgrades you should invest in and which ones should you avoid?
You are unlikely to have heard of the word “arbitrary owner”, but it is actually used more and more commonly in the world of commercial real estate. To understand what it is and how it relates to real estate ownership, let us first look at the definition of arbitrary.
The commercial real estate market for office properties in Orange County is incredibly interesting. On the one hand, prices here continue to be lower than those in the Silicon Beach area of Los Angeles, or in San Francisco as a whole. On the other hand, rent prices here are rising more quickly compared to anywhere else in the entire country. This is significant and makes the market very interesting for prospective property investors.
Orange County is a real estate market that many can only dream of. All properties, whether commercial or residential, are being sold at values that have broken records. This has recently been researched by commercial real estate brokerage JLL, which noted that by the third quarter of 2017, 34 office spaces were purchased in Orange County, grossing some $1.92 billion. This is an 88% growth year on year and has beaten the 2015 records.
If you are selling a piece of commercial real estate in Orange County, and it is conveniently located and available for a reasonable price, you are likely to receive hundreds of offers. Orange County is experiencing a massive boom, with lots of activity and strong economic growth. In fact, the Los Angeles-Orange County economy hit $1 trillion in 2016.
Every week, there are significant changes and developments in the commercial real estate market in Orange County. It is a dynamic part of the country, as well as a very affluent one, which makes it very interesting for businesses and investors alike. So what are the latest developments to be aware of?
2017 was an interesting year for commercial real estate in Orange County and one that brought a lot of promises with it. However, there were also some major disappointments. Indeed, in Newport Beach, there had been plans for two very large-scale projects. Had they been completed, they would have delivered hotel developments, new retail facilities, and luxury housing. However, local residents protested and even threatened with lawsuits, forcing the Newport Beach City Council to drop the plans.
If you are someone who wants to sell a piece of commercial real estate, there will be a lot of things on your mind. However, two things are of particular importance, being, firstly, that you can sell for the best price and, secondly, that the property sells as quickly as it possibly can. To achieve this, you need to put a good selling strategy in place. Naturally, there are numerous strategies around that you can use to increase your chances of success, and good investors will have had an exit strategy in place since first buying the piece of commercial real estate.
The year 2017 is now behind us, and we have entered 2018. 2017 proved to be a good year for the Orange County commercial real estate market. It continued to grow, values continued to break records, and the up-trend is now longer than what it has been in decades. Of course, some people continue to be cautious as a result of the 2009-2010 calamities, but there are now cases where prices are three times higher. Meanwhile, lease rates are showing similar trends. So which lessons have been learned from commercial real esate in 2017 that can be applied to 2018?