Author Archives: Fritz

Commercial Real Estate

An Overview of Orange County Commercial Real Estate

orange county commercial real estate

Set aside the gloom and doom news you might have heard about California’s economic woes in this post-pandemic world. Many experts actually believe California is in for a robust few years ahead, and the state and country continue to recover from the pandemic. While the pandemic certainly had reared its ugly head in many ways, including for the Orange County commercial real estate market, things are rebounding.

Orange County is one of the world’s most recognizable counties, and as such, this big piece of Southern California real estate naturally attracts experienced people in business and investors. With their real estate investing, these people will bring Orange County back to its pre-pandemic status.

Get to know what Orange County has to offer and the types of commercial real estate Orange County has. Read on to learn more about some of the Orange County commercial real estate market trends.

Higher Than Normal Office Vacancies

In the pandemic world, the social distancing and lockdowns forced office buildings to go dark and workers to break open the computer at the kitchen table instead.

It’s probably not surprising to hear the office real estate in Orange County hit record-high vacancies. In fact, it had been almost a decade since that much commercial real estate sat vacant in Orange County.

Very slowly, Orange County office space usage is seeing a return to some form of normalcy like before the pandemic. Companies are slowly bringing workers back into the office from working at home.

This means that office space that has sat empty is seeing a shifting trend. It’s slowly filling back up with workers and businesses.

This is not happening quickly but as a slow decline in vacancies in the commercial office market.

High Vacancy Rates on High-Value Commercial Sites

The high-volume sites are one type of commercial real estate that seems to continue with high vacancy rates. Businesses are not coming back to the big open office space found in towers like they once were before the pandemic.

Orange County is seeing many large tower offices with higher-vacancy rates. It’s a twofold reason businesses are running back to those big office spaces:

  • Cost
  •  A shift away from large, open-plan offices

The market identifies these four and five-star properties as beautiful, luxurious, and even spacious, Yet, they simply cost more than some other options.

As business recover from the pandemic slowdowns they weathered, they aren’t quite ready to opt for these higher-rent options.

The other reality is that their workers are excited to return to big office spaces with open walls and many co-workers around them.

The market is seeing a slow and steady rebound for the smaller, more compact office building spaces. Some experts believe that the market overbuilt the high-value sites, and there’s more than the demand requires for the area.

Leasing Market Inching Towards Pre-Pandemic Status

Post-pandemic, it appears that the commercial real estate market is slowly improving if you plan to lease the property. The market has not entirely rebounded but is showing steady and favorable improvements.

It’s worth noting that most experts believe the market may have hit a bit of a plate on leasing, though.

Some experts suggest the challenges in measuring the lease growth for commercial properties. This is because while many businesses may have leases, there is a high volume of releasing between businesses.

Companies don’t want offices they’ve leased sitting empty if they have workers who aren’t returning. Instead, they are opting to sublease the property to avoid a loss.

Reduced Levels on Commercial Construction Sites

Interestingly, the commercial construction market is not rebounding as the leasing and buying markets have. While some new commercial construction has resumed in Orange County, it’s far from pre-pandemic levels.

It could be that the construction community recognizes the abundance of empty pre-existing real estate. They could also recognize an overzealous amount of building done pre-pandemic.

Either way, commercial real estate construction is only building at a rate of about half what they were doing before the pandemic. Experts believe it will take much longer for the commercial construction market to rebound fully compared to the leasing and buying property markets.

Commercial Property Sales

Commercial property sales trends come with a mixed bag of results, some good and some less favorable results.

Real estate investors are back to buying commercial property in Orange County but not at the same volume the real estate market had seen before the pandemic. That’s the less favorable trend.

However, the good news is that the value of commercial property sales is actually significantly higher than in previous years.

So, while fewer commercial properties are being sold, the ones selling are going at a much higher rate than in previous years.

Interested in Orange County Commercial Real Estate?

Whether you’re in the market to lease a commercial property or buy property, you need an expert who can guide you through the process.

If you’re ready to make a move in the commercial market, then you need to work with a commercial real estate expert who can assist you to get the right property for your business needs.

Whether you need help defining what kind of space your business needs or assistance narrowing down the best property that checks off all of your needs, a commercial real estate specialist can help you find the right commercial property for you.

Real Estate Trends in Orange County, California

There’s no question that the pandemic was highly impactful on the Orange County commercial real estate market. The good news is that as California recovers from the pandemic, the trends show the commercial real estate market following suit.

If you’re looking for commercial property in Orange County, whether to buy or rent, we can help. Let us help you find the right property for your business. Contact us today or call us call us at (877) 775-9625 for all your commercial real estate need, so we can get started working together.

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Commercial Real Estate

How to Invest in Commercial Real Estate in Orange County, CA

invest in commercial real estate

It might surprise you to learn that houses in the United States now cost over $350,000 on average. Some areas of the country are seeing an increase in home value faster than others, such as Texas, California, and Florida.

Interestingly, many people overlook the opportunity to invest in commercial real estate. In Orange County, there are plenty of opportunities to invest in commercial real estate. With the right approach, you can make a smart investment that will pay off in the long run.

Here are a few tips on how to invest in commercial California real estate.

Research the Local Market

Before you invest in any property, it’s essential to do your homework and research the local market.

This will help you understand the current trends and what types of properties are in demand. You’ll also get a better sense of the potential rental income you can generate. It’s also a good idea to consult with a real estate agent or broker who specializes in commercial properties.

They’ll be able to provide you with valuable insights and guidance.

Choose the Right Location

When it comes to commercial real estate, location is everything.

You’ll want to choose a property that’s situated in a high-traffic area. This will increase the chances of attracting tenants and generating rental income. It’s also important to consider the surrounding businesses when choosing a location.

You’ll want to make sure the property is near complementary businesses. For example, if you’re investing in retail property, you’ll want to make sure it’s near other stores and restaurants.

Consider Your Future Goals

When investing in commercial real estate, it’s important to think about the future.

You’ll want to choose a property that has the potential to appreciate in value. This will ensure you make a profit when you eventually sell the property. It’s also crucial to consider the future uses of the property.

For example, if you’re investing in retail property, you’ll want to make sure it can be easily converted into office space if the need arises.

Think About the Risks

Of course, no investment is without risk.

When investing in commercial real estate, it’s important to be aware of the potential risks. These include things like tenant turnover, vacancies, and repair costs. However, if you do your homework and choose a property wisely, you can minimize the risks.

This will help you maximize your chances of making a profit from your investment.

Work With a Professional

This is something you simply can’t overlook.

When investing in commercial real estate, you’ll want to work with a professional who knows the ins and outs of the industry. They’ll be able to guide you through the process and help you make the best decisions for your investment.

What Should I Look For in a Broker?

Finding a broker might seem difficult at first. But, there are key attributes to keep in mind to help you make the best decision for your situation.

Let’s take a look at some of the most notable.

How Experienced Are They?

Look for a broker who has experience in commercial real estate.

They should know the ins and outs of the industry and be able to guide you through the process. They will also help you avoid common pitfalls that you may have otherwise encountered. Keep this in mind when moving forward.

Do They Specialize in a Particular Type of Property?

It’s also a good idea to find a broker who specializes in the type of property you’re interested in.

For example, if you’re looking to invest in an office building, you’ll want to find a broker who specializes in office properties. They’ll have the required knowledge and resources to help connect you with the property that’s best for you.

What Is Their Track Record?

When it comes to finding a broker, you’ll also want to consider their track record. Ask them about the deals they’ve closed in the past and whether or not their clients were happy with the results.

This will give you a good idea of what you can expect if you choose to work with them.

What’s Their Network Like?

A good broker will have an extensive network of contacts in the industry.

This will come in handy when it comes to finding the right property for your needs. They should also be able to help you navigate the negotiation process. Although working with a professional who does not have a large network doesn’t mean you can’t get the results you want, it is less likely that you will be able to.

What’s Their Fee Structure?

You’ll also want to find out how the broker plans on charging you for their services. Most brokers work on a commission basis.

This means they only get paid if they’re able to successfully close a deal. However, some brokers may charge an hourly rate or a flat fee. It’s important to find out how the broker plans on charging you before you agree to work with them.

This will help you avoid any surprises down the road.

It’s Easier Than You Think to Invest in Commercial Real Estate

Just be sure to do your homework and work with a professional who knows the ins and outs of the industry.

This will help you make the best decisions when you invest in commercial real estate. Looking for other ways we can help you out in the future? Be sure to reach out to us today at (877) 775-9625 and see what we can do!

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