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Commercial Real Estate

Rancho Cucamonga Shopping Center Sells For $9.8 Million

RC Plaza is a popular shopping center in Rancho Cucamonga, CA. It is found where East Foothill Boulevard and Archibald Avenue intersect. It has been announced that the shopping center has been sold for $9,795,000 recently. The purchasers have been revealed to be Voit Real Estate Services and the Hanley Investment Group Real Estate Advisors. The latter is a real estate advisory and brokerage firm that has won numerous awards over the years.

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Commercial Real Estate

Orange County Commercial And Residential Properties At Risk From Climate Change

The shoreline of California is changing and the sea level is rising as a result of climate change. It is believed that this will result in many properties being at risk of flooding within the next three decades. This was revealed by a study completed by the Union of Concerned Scientists (UCS).

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Commercial Real Estate

Northern Orange County Sees An Increase In Industrial Real Estate Supply

industrial real estate in northern orange county

Orange County is notoriously low in its supply of industrial properties. However, it now seems that change is afoot. A 232,000 square foot, four building project will soon start construction in the northern part of the county.

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Commercial Real Estate

Is Having a Commercial Real Estate Broker Necessary to Close a Deal?

An important question is how much technology will be able to replace the human players within commercial real estate deals. That said, most experts agree that it is highly unlikely that it will ever be possible for brokers and agents to be fully automated, this despite an increase in things such as QR codes. However, a question that does come up is whether or not it is truly necessary to have a broker present during every deal.

Understanding the Roles in Commercial Real Estate

There are many different players in every commercial real estate deal. It doesn’t matter whether people have an existing space and wish to renew their lease, whether they want to start a brand new lease, or whether they wish to purchase a piece of commercial real estate. There are always two specific sides to the story. First, there is the agent who represents the tenant or buyer and negotiates on their behalf. Second, there is the individual who represents the building’s owner. It is possible in certain states for someone to represent both, and California is one of those states. This is why Orange County is also home to a number of dual agencies, although they do have to adhere to some regulations.

To help both tenant and landlord feel the transaction is fair and transparent, according to Kadosh, brokers may come up with certain caveats in deal structures, word agreements in certain ways or have parties provide tax returns, sales returns and other data, especially with large institutional clients.

The Importance of a Good Broker

Both sides of the deal, however, even in a dual agency, have a specific purpose. The owner’s agent, for instance, is responsible for finding a buyer or a tenant for a commercial property. They do this in a variety of ways, including marketing to prospects. Agents are very good at advertising properties, using signs and online advertisements for properties and finding inquiries and interest in them. At this point, however, they often find themselves quite overwhelmed with the elements within a negotiation. It is vital, therefore, to have a good broker on board.

Such arrangements will work just fine when your broker is showing you properties represented by brokers in other offices. However, the situation gets cloudy if your broker’s own office has taken listings for spaces that you want to see. This puts your broker in an awkward position. The broker is duty-bound to find you the best space, regardless of who has the listing, but is also committed to contribute to the success of the office.

The Role of the Procuring Agent

Meanwhile, there is the procuring agent who wants to find a space for the would-be tenant. Should there be a simple list that shows all available buildings, and should this list be easily accessible, then there would be far less need for a broker, although this role would not be eliminated in full. This is seen, for instance, in residential properties because of the fact that these are listed on a variety of different websites. Commercial real estate agents do not have this luxury, however, relying mostly on Loopnet. Unfortunately, this isn’t properly governed, nor is it overly accountable, which means that it can’t truly be depended on.

Perhaps a good analogy of the broker is that of the flight attendant. Many believe that the role of the flight attendant is to serve drinks and make people have an enjoyable time. In reality, their role is to help individuals should things go wrong. Yet, it is very rare for things to actually go wrong, which is why they actually have the time to serve drinks and food as well. They can never be fully replaced or fully automated, however, no matter how good a self-serve system they may be able to implement.

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Commercial Real Estate

Survey Demonstrates Recovery Of CRE Market Has Extended For Three Years Although Retail Industry Is Retrenching

According to the Allen Matkins UCLA Anderson forecast, the office building market in Orange County in particular is now very positive.

The sentiment for San Diego and Orange County markets has also rebounded from the June 2017 survey. In each of these markets this indicates future rental rates and vacancy rates will be better than they are today.

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Commercial Real Estate

2017 Was The Year Of Hotel Investments In Orange County And The Rest Of Southern California

It seems that 2019 was the year in which people started to invest in hotels across Southern California. This makes sense because it is a hugely popular tourist destination and visitors are happy to pay quite significant prices. So much so, in fact, that there are now some concerns about affordability for the average middle class Californian. Southern California hotel investments are on the rise.

As the weather warms up, families across California are planning summertime visits to the beach. But overnight trips to the state’s famous coastline are becoming increasingly difficult for middle-class residents to enjoy because the price of admission is soaring.

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Commercial Real Estate

Commercial Tenants In Orange County Could Be Facing A 40% Rent Increase

Many businesses in Orange County choose to lease their building after weighing up the pros and cons of leasing vs buying. When people lease a property, they will need to pay a monthly amount to their landlord. There are times, however, where the monthly rent can increase, sometimes by as much as 40 percent!  Learn why their may be a commercial rent increase in orange county.

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buying

What Do You Do When Your Seller Refuses To Close?

When you make a transaction in commercial real estate, then a contract is involved. This means that the seller and the buyer have both agreed to something, which generally involves something of value. There are legalities involved in a contractual relationship as well. But what happens when a seller refuses to close?

A contract is a legally enforceable agreement between two or more parties. It may be oral or written. A contract is essentially a set of promises. Typically, each party promises to do something for the other in exchange for a benefit.

Yet, despite the fact that there is a legal obligation for both parties to fulfill their promises, it may happen that the seller suddenly decides that the deal is a no-go after all. You have the opportunity to take legal action in this case if you are the buyer. However, this is a complex arena, and a very costly one as well, so most people will simply decide to move on and find a different property. That said, there are a few other options that you may want to consider first.

Usually, a buyer and seller who want to make a deal will start by negotiating a price on the commercial real estate. They then create an agreement in which both the closing date and contingency period is set.

With a home sale contingency in place, the transaction is dependent (or contingent) upon the sale of the buyer’s home. If the buyer’s house sells by the specified date, the contract moves forward; if it doesn’t sell by the specified date, the contract is terminated.

If all of this is agreed upon, both parties sign the agreement contract, which is then delivered. Funds are put into escrow, and the transaction is ready to proceed. But, sometimes, things go wrong and a little snag appears.

In the vast majority of cases, the snag appears on the side of the buyer. When they investigate the property, for instance, they might find something they aren’t happy about. Perhaps the roof has a leak, the air conditioning system doesn’t work, the fuel tank percolates, the expenses are higher than the buyer originally assumed, the appraisal has revealed that the property is worth less than what was estimated, and so on.

Buyers have significant protection against snags like this, so long as it is uncovered during the due diligence or contingency period. What then happens is that the buyer either pulls out of the deal, requests for a discount on the purchase price, or asks the seller to fix the problem. There are lots of options available, in other words, and the reason why there is a snag is very obvious.

Of course, the buyer also has the opportunity to accept the property as is, which is rarely the case. Instead, they could come to a new agreement with the seller. Finally, they may waive the contingency, which means the money in escrow becomes non-refundable and the escrow prepares for close. While they can still cancel at this time, it would mean the buyer would lose the deposit.

Sellers, however, do not have these escape hatches. Once they agree to make a sale, they are stuck with it. Unless the buyer takes very specific actions in breach of the contract, the seller must close. Yet, some of them refuse to do so. In the majority of cases, this is because they are bluffing and they hope the broker will offer them some more money.

Rules are in place for a reason, and they exist from when the listing agreement is signed to when the keys are handed over. But commercial real estate is also a business and sellers want to make as much money as possible. They hope to come across an inexperienced buyer or broker and essentially start to play a game of poker. This is why a seller refuses to close.

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Commercial Real Estate

How To Get Your Budget Right For A Commercial Real Estate Lease

Rent is usually a substantial cost for a business. This is why it is so important that, before you sign a commercial real estate lease, you get your budget in order. Indeed, commercial real estate experts always talk about the importance of proper planning and preparation.

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Commercial Real Estate

What Happens After A Listing Agreement Is Signed?

If you own a piece of commercial real estate in Orange County, there are three things you may want to do with it. Firstly, you may want to run your own business from the property. More commonly, you may want to lease it out, so that you can earn on your investment. Lastly, you may be in a position in which you want to sell the property.

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