According to a recent report, the California industrial commercial real estate market is booming. Though San Diego isn’t listed among the top five markets in the state, many sources indicate that commercial real estate here is also in high demand.
An online commercial real estate transaction platform – Ten-X Commericial – says five California cities occupy the top of its lists of “Buy” markets. However, the Inland Empire, an area northeast of San Diego and east of Los Angeles, did fall into the top five “Sell” industrial commercial real estate markets.
The report says the industrial commercial market “is in high demand across the country,” but leaves no doubt that California is leading the way, “solidifying its place as the top state for investors to purchase industrial assets.”
Pricing is averaging $85 per square foot this year, which is solidly up from last year’s $80 per square foot.
One of the biggest reasons for California’s success lies in the ever-increasing demand for warehouse space that is driven by the rise of online commerce.
According to the report, the top five industrial commercial markets nationwide (all in California), include:
- Los Angeles: “Insatiable industrial demand is keeping vacancy low and rents high”
- Sacramento: Rising employment, salaries and population are driving commercial rents higher
- San Francisco: its “booming tech sector continues to push its economy forward”
- Oakland: the economy there “is continuing its slow but steady expansion”
- San Jose: employment is up, as are salaries and commercial rents
Of course, disputes over contracts, boundaries, foreclosure and leases can bring commercial real estate transactions to a screeching halt. That is why it is crucial to have on your side an attorney experienced in commercial real estate litigation and dispute resolution.