There’s some truth to the old adage “hope springs eternal.” In most regions of the country, this is associated with the changing of winter to spring and the optimism that comes with it. Even though it is spring time for most of the year in our region, the optimism for the commercial real estate market continues.
The latest survey produced by the UCLA Anderson School of Management showed continued confidence among commercial real estate developers through 2018. The survey is compiled to provide a three-year forecast of the market. It not only takes into account the amount of time it takes for a commercial project to be completed, but also rental occupancy rates and the financial conditions necessary to initiate such project.
From sports venues such as the L.A. Rams’ new stadium to new multi-use buildings in the South Park area of Los Angeles, most people agree that California’s commercial construction industry has returned. Job and income growth combined with a lack of sufficient office space has driven this sentiment among developers in San Diego.
In the midst of a business boom, it is prudent to ask when it all may end. Indeed, a smattering of caution was found among developers. They cited the slower than expected economic growth outside the U.S. and the volatility of foreign markets suggest that caution should always be exercised.
But caution and due diligence go hand in hand. This is where the guidance and experience of a skilled real estate attorney can be helpful. If you have questions about the legal steps necessary to acquire or finance commercial properties, contact The Loftin Firm at 760-814-9649.