US Commercial Office & Hotel Sales

Los Angeles Are you thinking of buying commercial real estate in or around Los Angeles? Maybe you want to purchase an office for your business in Los Angeles or invest in a hotel. Los Angeles is a perfect location in which to do so. It is the largest city in California and it is the second largest city in the United States. Los Angeles County includes the city of Los Angeles. It also includes Santa Ana and Long Beach. This area is one of the most significant economic areas in the United States. Los Angeles has its focus in business, entertainment, education, fashion, culture, sports and media. Los Angeles is a leader in television and film production, video game production and recorded music.

Los Angeles Commercial Real Estate

There are many things to consider if you are thinking about purchasing commercial real estate in Los Angeles, especially in prestigious areas, such as Hollywood or Bel Air. It is important to start with an adequate amount of collateral. This is the first step in investing in commercial real estate in Los Angeles. Aside from having adequate collateral, there are a number of other considerations. Read below for the top ones.

Know the Laws

There are a number of federal and state laws that investors must abide by when selling or buying commercial properties, therefore it is important to seek the guidance of a professional real estate broker before engaging in these transactions.

Do Your Homework

If you are considering buying in the Los Angeles real estate, it is a must that you do some research and are familiarized with the market conditions in the area that you are looking at. Know the average cost of the type of commercial space you’re seeking, whether that is office, industrial or retail. A commercial real estate broker can show you historical data for the region.

Assess Your Needs

There are several factors that you should consider before you purchase a commercial property. These factors include the financial status of your company, as well as the availability of the commercial property that fits your needs and. It is important to understand that these types of investments are usually made after very intense scrutiny and an examination of the return on the investment.

Carefully Weigh the Advantages and the Risks

It is also important to carefully consider both the advantages and the risks of buying commercial real estate. One benefit of buying commercial real estate in Los Angeles is that if you want to make the most of your profit on investment, buying the property will give you more returns than renting. The Los Angeles commercial real estate market is hot, especially in some of the high-demand areas, such as Bel Air and Beverly Hills. Also, if your business has significant returns, you can counterbalance those returns when it comes time to pay taxes by claiming the depreciation of your estate. Furthermore, even though for tax purposes, buying commercial real estate increases the value of your assets over time. This means that the investment of your company will increase. A risk of purchasing commercial property can be choosing a location that does not endure the commercial property market trends.

Other Considerations

Other important things to take into consideration before purchasing a commercial property are the location, how easy it is for your customers and suppliers to access, the condition of the property and the possibilities for renting or resell. It is important to check the zoning laws and development plans to determine what kinds of business are allowed in the area. It is also advisable to determine if any adjustments to the infrastructure or city planning might impact the property. It is also wise to work with a knowledgeable, experienced real estate professional to help guide you through these issues.

The Benefits of Buying Commercial Real Estate in the Los Angeles Area

Secure Investment

Commercial real estate is a secure investment, especially in Los Angeles and surrounding areas. If you plan to rent the building out, most likely the tenant’s rent payment will cover most of the large expenses of the building, such as the mortgage. Most commercial rents increase with increases in the Consumer Price Index. Any increase you have in your expenses will often be covered by a corresponding increase in rent to the tenants. In addition, tenant improvements are typically paid by the tenant.

Appreciation

The commercial real estate market is very strong in most areas in Los Angeles. As a result, most of the time, commercial properties increase in value over time. Additionally, there are several things that an owner can do to add value to their commercial property, such as reducing operating expenses or increasing rents.

Tax Shelter

As the appreciation on commercial real estate is only taxed when it’s sold, equity can be created tax-free. Many commercial owners can avoid paying tax when they sell by doing a 1031 exchange. If additional investment property is purchased, taxes are not levied.

Additional Space

Buying a larger commercial property can really help daily business operations by providing more space in which to operate. In addition, if there is additional office space that is not being used, it can be leased out for additional income.

There are many opportunities in Los Angeles for investors and businesses looking to purchase commercial real estate. It is important to consult a real estate professional to help you ensure that your purchase becomes a worthwhile investment. If you are in the market for investment or commercial real estate in the Los Angeles area, call Kent Tarman with the J.H. Tarman Company. The J.H. Tarman Company is committed to providing clients with the industry’s best advice and guidance on the purchase and sale of commercial real estate including office, multi-family, hotels and investment properties. Call Kent Tarman today to help you with all of your commercial real estate needs.

Kent P. Tarman
Kent P. Tarman
Broker / Realtor