Mid-Sized Commercial Real Estate Office Rentals In Demand
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Commercial Real Estate on Wednesday, April 3, 2013.
It can be challenging for entrepreneurs to find good rental properties to move forward with their business endeavors. The tricky part is to find commercial real estate that has all of the amenities they need while also being affordable. This is why many entrepreneurs in California have been migrating towards mid-sized office spaces, which has kept the vacancy rates for this sector relatively low. However, this has had an inverse effect on lower end, smaller rental spaces as well as high end, larger office rentals.
Two California counties experienced several high-profile, large companies moving to the areas which resulted in significant drops in vacancy rates for office spaces within the first three months of 2013. This helped to maintain a 20.5 percent vacancy rate for office rental spaces for the area. Vacancies in the area decreased by 21.4 percent in the last quarter of 2012.
On the other hand, newer commercial rental properties, which are generally more expensive have largely remained vacant in these two counties. The same also applies for smaller and cheaper office rental spaces in these particular counties in California. Many experts say that small businesses tend to prefer the lower rents in the mid-sized office spaces and are not interested in upgrading to larger office spaces.
Whether one is looking to rent commercial real estate or is a landlord trying to lease out space, it would be wise to have a strong understanding of applicable rules and regulations in California. Along with state laws, each local jurisdiction will have their own rules and codes that regulate the operation of commercial office spaces. Failure to follow these applicable laws could result in significant fines and even future civil lawsuits.
Source: pe.com, "REAL ESTATE: Small office rentals vital to area rate," Jack Katzanek, March 26, 2013