Excellent Locations For Commercial Real Estate In California
November 14th, 2013 by Diane Moore
Commercial real estate is a fast growing business, and California is not left out. California is the hub of entertainment (Hollywood), hi-tech development (Silicon Valley, wine-making (Sonoma and Napa Valley) and agricultural production (Central valley). The state of California has the strongest economy in the US, and if it’s seen as a separate nation, it’s between 7th and 10th in the list of the world’s largest economies country-wise.
The California commercial real estate market is really starting to rebound. You always see many people leaving some cities Bakersfield where the market may be over-saturated. In a town like Bakersfield, the over-saturation can make things very hard to sell a home in the area. There are also other considerations that need to be observed other than saturation.
Market variance couldn’t be more different through the entire state. Some people that live in the Bakersfield community may not be able to get rid of their home quick enough. There are much bigger communities like San Jose that continue to develop, and there are a small number of foreclosures. The average cost for a home in San Jose can be more than $6000. The California real estate market has been aided by people in need of good employees that really understand the profits of information technology. Edenvale is one of the best neighborhoods to live in, people need to pay attention to the quality of the school districts first, and they’ll move there.
The inflated prices linked with homes in cities like Hemet are at last beginning to come down. The fact that the price of these homes is starting to reduce make it possible for more retirees to move into the city and live comfortably. If communities like Hemet can reduce their rate of unemployment, you’ll see more people moving in and starting to feel at ease with their future. If Riverside County is capable of bouncing back in a suitable way, it’ll have very positive impact on the real estate market of California.
Diversity is something that California real estate market can benefit from. Imperial County (bordering Mexico and Arizona) continues to develop. The fact the area has ended such a melting pot makes it possible for someone to find very good homes for $400,000. As more people are in a position to use their creativeness and move into the middle class there, Imperial County will be a great location for builders to work and learn about California real estate market. Builders need to reclaim their confidence for big sections of the California commercial real estate market to rebound.
The best locations for wholesaling commercial real estate in 2013
Investors are always hammered with the message “location, location, location” and that their success relies in it, but what does that mean for today’s investors?
Location certainly matters and involves not just the state you invest in but which neighborhood, city and even side of the street and lot. But the big question most investors are asking nowadays is whether they should go on hunting local deals or start searching in markets a little further afield?
A Country of Diverse Property Markets
There is a vast disparity in US housing markets today. In certain areas like San Diego and Sacramento, California home prices are surging by double digits and distressed property sales as a fraction of all transactions are falling dramatically. In some other areas of the country, foreclosures are surging, and new filings are up to almost 100%, while prices for homes still find bottom.
This has led to some investors to battling the competition in bidding wars for discontinued foreclosure deals, while others have far more than enough to pick from and simply wish that their markets a bit further ahead in the recovery than they are now.
What Matters Most for Flipping Houses?
Price really matters little, and the market direction possibly matters even less, as proven by people who have earned millions out of the house flipping over the last seven years. Demand and the aptitude to find end buyers is crucial but two factors that investors needs to be focused on are spread and speed.
It’s critical for individuals aimed on wholesaling real estate for fast cash to recognize the difference between net profit and profit margin. Making the best net profit and real cash is all about the variation in what properties can be bought for and turned around for fast. By aiming on the dollar amount of the spread, investors can make a lot more by doing less, rather than simply focusing on high volume and percentages.
Top Notch Areas for Commercial Real Estate in California
Los Angeles (The City of Angels) is the second largest city in the US. It has Mediterranean climate with hot dry summers and mild warm winters. The city is a wonderful conglomeration of high-end shopping, beautiful beaches, low brow art, and scenic mountains. This affluent bio-diversity offers a little something for everyone. While the city owns everything a big city can offer, it’s also right near beaches and outdoor activities. Even enthusiasts for winter sports can find snowboarding and skiing just a short drive into the mountains. With very many people of diverse races and backgrounds drawn to the city, there are a lot of options in LA condos for both potential buyers and investors.
The city has grown and spread out over the past years by seizing and engulfing the smaller towns neighboring it. This offers the city several assorted neighborhoods each with its own distinct feel or atmosphere. The city has many recognizable landmarks including the world famous Hollywood sign, Grumman’s Chinese Theater, the Kodak Theater, Dodger Stadium, and Hollywood Boulevard.
Condos in Los Angeles are sought after residents and investors alike. With its thriving business and world famous tourist attractions there are many reasons to relocate. An LA condo can place you right next door to a big job, or even a neighbor to an A-list celebrity. LA condos are surprisingly affordable, and you will find the one to fit every budget.
Local Ventura and LA Real Estate Market
Home values increase by 13% every year in Ventura and LA County. Many of the largest funds of the world, including Colony Capital, THR California, KKR, and Waypoint are acquiring almost a third of all homes on the open market to rent over the next five-year period. This is very important to homeowners in Ventura and LA counties, as real estate will possibly continue to rise in value.
You need to take into account many factors for home appraisals in Ventura and LA County. Location, size, construction quality and curb appeal are some of the factors, but many other factors are also considered.
The Palm Springs Desert Resorts area in Southern California is among the most beautiful and well-known resort areas in the world. As a result, this tiny but booming area boasts a very active and dynamic commercial real estate market. This area consists of 7 adjacent cities starting with Palm Springs on the West end of the valley stretching to Indio on the eastern end, 35 miles away. Other resorts include Indian Wells, La Quinta, Rancho Mirage, Palm Desert, and Cathedral City.
Like most resort and Sunbelt areas in the US, the local real estate market has undergone some difficult times over the recent years. Though, now may be the best time to buy real estate in greater Palm Springs, CA area.
Why is now a good time to invest in Palm Springs real estate? It is because the property values have corrected as high as 60 % off the market boom. There are some really incredible buying opportunities throughout Palm Springs Desert Resorts area.
San Diego city is also considered to be a good commercial real estate investment area. Look back at the times when there were thousands of condos to pick from in the thriving area of downtown San Diego, they were so numerous that heads would turn just trying to determine which house to view and in case you purchase resale condo, new condo or one under construction. Well, the cycle of real estate is still moving on through its rather usual pattern of oversupply to the present inadequate supply. As a fraction of the overall number of condos in this area of San Diego, just 2.3% of these are for sale. By most standards that real shortage.
The number of condos on sale in January 2012 was around 450, but by December 2012 they had fallen to 230. I do not see this stock contracting trend easing anytime soon. Nearly 10 years back when there were about 50 units on trade in the area of downtown San Diego, you needed to book an offer immediately you saw it penetrate the market, and for over asking the cost or another potential buyer would beat you in snatching the unit.
This market is still in the downhill building phase with no new houses anticipated entering the market before 201, and still no houses are presently under construction. What does this indicate for a commercial real estate seller or buyer? Well, if you are a seller, you need to deem that the options you got are as great as you will continue to have them for the next 5 to 8 years. This is a great opportunity for real estate investors.
Price Per Square Foot
Looking at the price per square foot is also used to find a base value for a property. If there is a comparable property in the area, including location, size and shape, it’s a good tool to use. Though, when comparing your home against a property with 200 square ft less than yours, it’s always a good idea looking at the bigger picture. Are you ready to pay an extra ten percent of the value?
Most likely not, but may be 5% more. But in case the property has an additional bedroom, it could add extra $10,000 premium. But practically, no one who paid $300 per square ft for a 1,000 square foot property will pay $300 per square foot for a 1, 100 square ft, all else being equal. It will always simply be a $10,000 premium, rather than $30,000.
In order to build your commercial real estate business as an office in your city or local town, and to gain the precise market share, you need a strategic marketing plan. And before you create the plan, you’ll need a strategic marketing position. In this way you will make an impact on a constant basis with the precise prospects and players of the commercial property industry. Basically, you want the market, the property investors, the business owners, and all local tenants and buyers to be informed that you’re the best out there and can assist them with their special property need.
So before you start considering your market plan, it is worthwhile bearing in mind what makes you better than the other agents in your area, and also the area you invest in. You must have a real reason in being unique in your property business, and your prospects should know you for that. This is both an issue for the office and for you as an individual. Everybody in your office should push the same story when they talk to prospects. Consider all the real estate factors and you’ll succeed in this booming business.
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