How to Promote Your Business by Means of Commercial Real Estate in California
January 10th, 2014 by Alisa Sava
California remains a perfect place to park your long-term real estate investment. The Golden State’s dynamic economy, skilled workforce, cutting-edge technology and commitment to the clean energy future make this region an attractive tit-bit for real estate business.
It is believed that commercial real estate in California will keep growing for the next three years. A rapid development of visitor-dependent services, entertaining and advertising industries is expected to stimulate further real estate recovery in the region. Most notably, market fundamentalswill improve in the Northern California, San Diego and Silicon Valley in particular.
Below we endeavor to summarize the main benefits of investing in California real estate.
Why Is It Worth Promoting Your Business in California?
California leads the nation in term of manufacturing and technology as well as higher education and entrepreneurship
California is the richest and most diverse economy in the US
Being a leader in job creation, Californian life standards are one of the highest in the country
California leads the nation for capital access
Technology industry is driving office demand, particularly in the dominant tech markets such as San Francisco and Los Angeles
Sacramento and Oakland are demonstrating the robust growth, and there are a lot of space options available in these area
A high demand for condo buildings: by the end of the year there are expected more than 300 new condos on the market
According to Business Insider, two Californian cities — San Francisco (#6) and Los Angeles (#13) — ranked in top fifteen in the “Cities of Opportunities” report for the 27 cities for doing real estate business
Los Angeles starts focusing on the suburban area, as many of them have become home to the region’s tech giants. These areas will stay the most attractive in terms of new construction in 2014
State energy and environment programs provide loan assistance and wide opportunities for green investors
According to the California Association of Realtors’ 2014 housing forecast, California property prices and sales will continue rising
Real Estate Perspectives for the Biggest Californian Cities in 2014
Providing the best conditions for maximizing profits and minimizing hassles, three top Californian cities remain the most appealing for investment property owners. We mean Los Angeles, San Francisco and Orange County.
According to the “Emerging Trends in Real Estate 2014” Survey, for the second year San Francisco becomes a top-ranked city for the real estate business. It remains a solid investment area for all property types.
San Francisco was ranked first for homebuilding prospects, third for development and first for investment. Despite being one of the most expansive markets, San Francisco will continue to prosper in 2014. The analysts predict 36% of new residents moving into the metropolitan area, 4,2 % growth of gross metro product and 5.5% growth in personal income.
Orange County is ranked number nine among all US markets due to its development and homebuilding prospects. Multifamily and office housing will become the most successful sectors to invest in. According to the Multiple Lisitng Service, this year Orange County has more than 6,350 homes listed for sale, compared with 4,199 a year earlier.
Los Angeles real estate will continue to improve in terms of development, homebuilding prospects and investment opportunities. The industrial market is predicted to growth in 2014:
“In Los Angeles things are going well; we are seeing the housing market rebound and the office sector coming along — not great, but steady.”
Los Angeles recovery will strengthen in 2014 due to the housing and visitor-dependent industries as well as the increasing growth in entertainment production and advertising.
Below we suggest some useful tips on how to make your real estate business flourish in California:
Invest your money in office supply: the development of tech industries, research and data centers create a high demand for office buildings
Pay a special attention to the secondary markets, such as Sacramento and Oakland with a robust economic growth and a lot of space options available
Focus on suburban areas, because many of them have become home to region’s tech giants
Invest in multifamily housing, condo buildings in particular: its popularity is stimulated by the huge demand from Generation Y seeking to rent
Draw your attention to the industrial sector with the warehousing singled out as particularly strong sub-sector: as the retailers continue to shorten their supply chains by means of e-commerce, especially in same/next-day delivery, the demand for warehousing centers close to major cities is expected to grow
Promote the hotel business: it is supposed to be in high demand this year, especially in such areas as San Diego and Napa
Invest in healthcare housing development which has recently become one of the most promising real estate sectors
The Most Successful Commercial Real Estate Projects in 2013
Californian development landscape is in full recovery after the recent recession. All over the state, significant office, retail, housing and infrastructure projects are moving forward. Here we are going to mention some of the most successful commercial property projects taking place in different California cities.
Brooklyn Basin, Oakland
Brooklyn Basin is one of the numerous projects started in Oakland in 2013. Mike Ghielmetti leads its development. This waterfront project will provide 3.200 homes and 200.000 square feet of commercial space. The project is still under construction, and all the site and infrastructure preparation will be held this year.
Marlow Project, San Francisco
New promising multi-generational affordable housing has been successfully finished by the Oyster Development Corporation. The building includes 98 units for sale and 4.700 square feet of retail. The property is perfectly located between Pacific Heights and Nob Hill neighborhoods.
Transbay Transit Tower, San Francisco
Transbay Transit Tower, a 1,070-foot skyscraper in the South of Market district of downtown. This project is under construction till 2017 and it is expected to be the tallest building in San Francisco.
The Wilshire Grand Center, Los Angeles
This world-class hotel is located in the heart of Downtown Los Angeles and is supposed to be the second tallest building in the city. It is set to open its doors in 2017. The building will offer not only luxury hotel rooms, but also fashionable restaurants, businesses and attractive nightlife events. The hotels’ unique design will fit perfectly the architect style of the City of Angeles.
Thus, the overall economic situation, development of cutting-edge technology, job growth and highly-qualified workforce will help California to maintain its leading status.
We have mentioned only some of the most successful projects that have been launched already. This year investors and developers will be witnessing even more fruitful opportunities and projects taking place in California state. Demand for office, industry and health care housing supply will determine the main trends of California real estate development this year.