Los Angeles Commercial Real Estate Takes Center Stage
Los Angeles has always been known as a global gateway city for commercial real estate in the United States. But the country's second-largest metropolis has taken the back seat to New York City and San Francisco over the last several years. That is starting to change.
Los Angeles surpassed Manhattan, the country's usual leader, in the first half of the year in deal volume, according to a CBRE report. Though volume decreased year over year in the city, it came in at $13 billion.
Additionally, Los Angeles' downtown is flooded with cranes developing upwards of 100 projects in the area. Plus, the Olympics is coming in 2028, with an expected economic impact of $11 billion, and the city now has two NFL teams after a drought lasting more than two decades.
These developments, as well as an unemployment rate hovering around 4.5%, arguably make Los Angeles one of the most exciting cities in the world to watch in terms of commercial real estate.
Los Angeles Commercial Real Estate Takes Center Stage
Los Angeles has always been known as a global gateway city for commercial real estate in the United States. But the country's second-largest metropolis has taken the back seat to New York City and San Francisco over the last several years. That is starting to change.
Los Angeles surpassed Manhattan, the country's usual leader, in the first half of the year in deal volume, according to a CBRE report. Though volume decreased year over year in the city, it came in at $13 billion.
Additionally, Los Angeles' downtown is flooded with cranes developing upwards of 100 projects in the area. Plus, the Olympics is coming in 2028, with an expected economic impact of $11 billion, and the city now has two NFL teams after a drought lasting more than two decades.
These developments, as well as an unemployment rate hovering around 4.5%, arguably make Los Angeles one of the most exciting cities in the world to watch in terms of commercial real estate.
EB5 Investors in the US – What to know
The EB5 program was created by Congress in 1990 to help create investments in underserved and underemployed areas of the country. The program offers green cards in exchange for an investment into the United States of $1,000,000. The original plan estimated 10,000 investment visas for foreign investors.
In 1992 a second investment opportunity was added, allowing individuals to invest only $500,000, as long as the money went to low-income parts of the U.S. where the employment rate was at least 150% of the national average. Unfortunately, states were put in charge of determining the targeted areas which created loopholes. EB5 regional centers determined where they invest could be adjacent to low-income districts.
EB5 Investors in the US – What to know
The EB5 program was created by Congress in 1990 to help create investments in underserved and underemployed areas of the country. The program offers green cards in exchange for an investment into the United States of $1,000,000. The original plan estimated 10,000 investment visas for foreign investors.
In 1992 a second investment opportunity was added, allowing individuals to invest only $500,000, as long as the money went to low-income parts of the U.S. where the employment rate was at least 150% of the national average. Unfortunately, states were put in charge of determining the targeted areas which created loopholes. EB5 regional centers determined where they invest could be adjacent to low-income districts.
Boyle Heights Sears Building Slated for Revival
1.7-million-square-foot complex to be reactivated with apartments and commercial space.
Last month, the Los Angeles Cultural Heritage Commission gave positive feedback to the proposed adaptive reuse of the landmark Sears, Roebuck & Company Mail Order Building in Boyle Heights.
The approximately 1.7-million-square-foot complex, built in phases between 1927 and 1970, was designed by architect George C. Nimmons in the Art Deco style. The 10-to-15-story structure historically operated as a distribution hub for Sears catalog products, although operations ceased in 1992. However, a Sears retail store still occupies a portion of the building.
Boyle Heights Sears Building Slated for Revival
1.7-million-square-foot complex to be reactivated with apartments and commercial space.
Last month, the Los Angeles Cultural Heritage Commission gave positive feedback to the proposed adaptive reuse of the landmark Sears, Roebuck & Company Mail Order Building in Boyle Heights.
The approximately 1.7-million-square-foot complex, built in phases between 1927 and 1970, was designed by architect George C. Nimmons in the Art Deco style. The 10-to-15-story structure historically operated as a distribution hub for Sears catalog products, although operations ceased in 1992. However, a Sears retail store still occupies a portion of the building.
Syndications – Are they a good option for Real Estate Investment?
What is a first-time investor to do, if they want to take advantage of a hot real estate market, but don’t have the liquidity to purchase a property for millions of dollars? A syndication may be a vehicle which can allow a smaller investor to co-invest alongside the “big boys.”
Syndications – Are they a good option for Real Estate Investment?
What is a first-time investor to do, if they want to take advantage of a hot real estate market, but don’t have the liquidity to purchase a property for millions of dollars? A syndication may be a vehicle which can allow a smaller investor to co-invest alongside the “big boys.”
VIDEO: An In Depth Follow Up On Retail Apocalypse.
CBI's CEO George Pino follows up his latest article blog article, with a further depth conversation on "The Retail Apocalypse." Check it out.
VIDEO: An In Depth Follow Up On Retail Apocalypse.
CBI's CEO George Pino follows up his latest article blog article, with a further depth conversation on "The Retail Apocalypse." Check it out.
Silicon Beach Continues Its Culver City Reach
There are several reasons why we will continue to see more technology based companies in Culver City; from proximity to Santa Monica, Venice and Downtown Los Angeles, to its growth potential and the city’s initiatives to make it more welcoming.
The extension of the Expo Line has already shown its impact on downtown Culver City. It has made the transit from Downtown to Culver City then to Santa Monica, a daily possibility. The tech hubs of Santa Monica and Venice can connect with Culver City and Downtown LA which is vital to Silicon Beach’s growth. It allows for these communities to easily communicate and commute to each other. This type of collaborative approach to work is what allowed for growth in Northern California Silicon Valley.
Silicon Beach Continues Its Culver City Reach
There are several reasons why we will continue to see more technology based companies in Culver City; from proximity to Santa Monica, Venice and Downtown Los Angeles, to its growth potential and the city’s initiatives to make it more welcoming.
The extension of the Expo Line has already shown its impact on downtown Culver City. It has made the transit from Downtown to Culver City then to Santa Monica, a daily possibility. The tech hubs of Santa Monica and Venice can connect with Culver City and Downtown LA which is vital to Silicon Beach’s growth. It allows for these communities to easily communicate and commute to each other. This type of collaborative approach to work is what allowed for growth in Northern California Silicon Valley.
Is Amazon the Start of the Apocalypse?
In the media, over the last 6 months or so, we keep hearing about retail apocalypse. News articles talk about the collapse of the retail industry. How these events are causing the demise of the retail commercial property network. Although many retailers have been shuttering stores, including many legacy brands, is this a sign of the collapse of the retail market? Or could it be an indication of a shift in the consumer spending trends?
Is Amazon the Start of the Apocalypse?
In the media, over the last 6 months or so, we keep hearing about retail apocalypse. News articles talk about the collapse of the retail industry. How these events are causing the demise of the retail commercial property network. Although many retailers have been shuttering stores, including many legacy brands, is this a sign of the collapse of the retail market? Or could it be an indication of a shift in the consumer spending trends?
What To Ask When Interviewing An Agent To Represent You.
in this day and age, many agents don’t seem to take the time to understand their clients’ business needs and wants. Perhaps they are too inexperienced to ask the right questions? After all, if you were to hire an employee, you would interview them before offering them a job wouldn’t you?
So what is a client to do? Well, I suggest you “interview” the broker. Ask the agent questions before hiring them.
What To Ask When Interviewing An Agent To Represent You.
in this day and age, many agents don’t seem to take the time to understand their clients’ business needs and wants. Perhaps they are too inexperienced to ask the right questions? After all, if you were to hire an employee, you would interview them before offering them a job wouldn’t you?
So what is a client to do? Well, I suggest you “interview” the broker. Ask the agent questions before hiring them.
What Makes a Good STNL Investment?
The Single Tenant Triple Net (STNL) market has been on fire the last few years. A slew of new buyers are looking to acquire a STNL. Many of these buyers are first time purchasers of commercial property, and many are unsure of how best to analyze the strength of the investment.
What Makes a Good STNL Investment?
The Single Tenant Triple Net (STNL) market has been on fire the last few years. A slew of new buyers are looking to acquire a STNL. Many of these buyers are first time purchasers of commercial property, and many are unsure of how best to analyze the strength of the investment.
The Wall of Maturities
Many people are not aware that most loans for commercial properties are not fully amortizing. Typically they are on a twenty five year amortization schedule, but the loan comes due in 7 or 10 years. What this means is that when the loan comes due, then the owner must pay it off, either through cash reserves, or by refinancing the loan. Most investors do not have the funds to just payoff the loan, so instead look to refinance the balance.
The Wall of Maturities
Many people are not aware that most loans for commercial properties are not fully amortizing. Typically they are on a twenty five year amortization schedule, but the loan comes due in 7 or 10 years. What this means is that when the loan comes due, then the owner must pay it off, either through cash reserves, or by refinancing the loan. Most investors do not have the funds to just payoff the loan, so instead look to refinance the balance.