Over the last year, many businesses have had to make significant changes to the way they operate. Because of health concerns, many employees have been working from home, and consumers have been unable or unwilling to visit many retail stores and other types of businesses. Those who own commercial real estate in California may be wondering what this could mean for their property values now and in the future.
At this point, these changes have not significantly impacted commercial property values. While things are inching toward normalcy in other parts of the country, California remains locked down in many aspects. Business owners and landlords may want to consider how to act now to protect their long-term financial interests. Some property owners have had to rely on forbearance programs to delay payments and stay on top of their finances.
It’s estimated that in 2021, many commercial property owners will have to invest more money in their properties in order to maintain them or find tenants. Unfortunately, experts believe other owners may end up defaulting on their loans, turning over the property to the bank or selling for a loss. A market downturn could lead to financial loss and other complications for businesses and California property owners.
Commercial real estate can be a tricky investment. The market is unpredictable, and it is impossible to accurately predict what will happen over the next few years. Because of this uncertainty, it is essential for investors, property owners and businesses to have knowledgeable legal guidance when buying, selling, developing and more.