Shopping centers, outdoor malls and indoor malls have all traditionally relied on prominent, well-known retail stores to draw customers here in Orange County and elsewhere. Large department stores used to fit the bill when it came to finding anchor tenants for retail developments. As the consumer landscape changes, developers may need to rethink what constitutes an anchor tenant.
Consumers here in California can log onto their computers and purchase just about anything from nearly anywhere in the world just like everyone else. This new way of shopping has put a dent into the traditional brick and mortar method, but it has not killed it just yet. Developers may still find tenants for new developments by looking to the boutique industry.
Real estate purchases have numerous moving parts whether they take place here in California or elsewhere. The due diligence portion of the process could take some time, especially when there are questions regarding the amount of work that may be needed to bring a site up to code. Developers often rely on environmental assessments to let them know what they may be in for when purchasing a certain plot of land.
When purchasing a piece of property here in Orange County, the parties must undergo a significant amount of due diligence before the transaction may close. A title search is part of that process. If easements are discovered, they could play a critical role in the progression of a development.
Insurance coverage is a large part of California construction projects. No one, from developers to subcontractors, wants to be left holding the bag if something goes wrong. With the increase in the use of WRAP exclusions, a general contractor, owner or developer could end up not having access to a subcontractor's insurance coverage if needed.
It seems that people across the country, including many here in California, are spending more time in hotels. In fact, Marcus & Millichap reports that as of the middle of 2018, the number of occupied rooms across the country has increased approximately 70 basis points. Since hotels seem to be performing well, developers may want to tap into this market.
Without the ability to adapt, many projects here in California would more than likely falter. As the needs and desires of consumers change, so must the commercial and retail landscape. Many developers and landlords already know this, and are making adjustments to their visions in order to remain current and relevant in today's market.
California zoning boards may make decisions regarding whether a project is built in a commercial zone, an industrial zone or some other area. However, the public may also play a role in the decision making process when it comes to the placement of a development. Without the support of the surrounding community, a project may not move forward.
Even as young as the state of California may be when compared to other parts of the country, it still has its landmarks. Preserving them does not need to get in the way of progress, however. It may be possible to save a landmark with a new development nearby or on the premises.
California wants to lead the nation in clean, green energy. Transitioning from fossil fuel power to solar power is just one way in which the state aspires to help the environment and lower costs for its residents. These are just a couple of the reasons why developers need to be aware of the fact that the installation of solar panels will become part of nearly every new residential housing development beginning Jan. 1, 2020.