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HENRY B. LaTORRACA

Civil Trial Attorney

Industrial properties can be excellent real estate choices

| May 31, 2018 | Uncategorized |

Many people in Los Angeles are interested in getting involved in the commercial real estate market. During the recession and financial crisis that took place around 2008, the value of industrial real estate declined. However, with the economy’s recovery, the recovery of this sector has escalated as well. In fact, many experts argue that it could be the most desirable type of commercial property in which to invest.

In the first quarter of 2018, 10 years after the recession, there were $16 billion in industrial real estate sales. This sum reflects the second-highest quarterly amount of sales in the history of the sector. It also reflects a 20 percent increase over the value of these commercial real estate sales from only one year before. The value of these investments is also reflected in their high desirability and low vacancy rate, currently sitting at 5.1 percent across the country.

The development of e-commerce has sparked recovery and escalated growth in the industrial sector. As e-commerce businesses proliferate, warehouse space and fulfillment centers have become an important part of today’s commercial market. Because location is often more important than fancy amenities, industrial properties can be some of the least expensive types of commercial real estate to own and to operate. This means that investors can acquire larger, more valuable spaces but have lower ongoing costs. In addition, these types of properties often come with longer leases that can mean ongoing, stable and predictable income over the whole period of the lease.

There are a number of factors to consider when thinking about expanding one’s commercial real estate portfolio into industrial properties. It is important to understand the details of zoning laws as well as the types of tenants that could be well-suited to the property. A real estate attorney may help investors review contracts and negotiate deals for their properties.

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