Business owners in California and around the country sometimes find themselves committed to commercial lease agreements that no longer fit their needs. Entrepreneurs may wish to break their leases because their businesses have grown and need more space, or they may be seeking an exit due to an unexpected downturn and a pressing need to reduce costs. Breaking a commercial lease can be straightforward or difficult based on the landlord involved, the market conditions and the state of the economy.
Nearly a decade after the Great Recession, commercial real estate investors in California and elsewhere should know that banks are making loans. If banks are not making loans in a given area, alternate loan opportunities may exist. Banks are largely lending because of foreign demand as well as a demand for apartment space. Low interest rates are also playing a key role in their willingness to make loans.
Commercial real estate trends in 2018 may influence how California residents or others choose to invest their money. According to the chief economist for the National Association of Realtors, the overall outlook for commercial real estate in 2018 is positive. However, there may be a bit of a deadlock between buyers and sellers in some cities. This is because landlords and sellers will want higher rents or purchase prices because of the economy's overall health.
The effects of climate change, such as rising sea levels, are likely to have a significant impact on the way people in California live and do business in coming decades. As sea levels continue to slowly rise, commercial real estate investors and developers could face new challenges when trying to obtain financing for projects in areas that may become at risk for flooding.