California has been one of the most socially and politically liberal states in the union for a number of years, often leading the cultural conversation in progressive measures and mindsets. Heading into the November elections, some analysts predicted that a win for Donald Trump and the rest of the Republican party might have overly negative effects on various business sectors, especially commercial real estate. However, as November falls further and further behind us, the numbers seem to indicate that there has been no great change in many business patterns, at least for the time being.
One of the most difficult aspects of launching or expanding your business is finding the right location that serves your needs and is actually available to lease. Even once you find something that seems perfect, you may run into a further dilemma — zoning. Not all buildings allow all kinds of businesses to operate in them, and if you're not careful when researching a property, you might end up with a lame duck of a lease on your hands. It is crucial to fully understand the zoning laws that affect your lease location to ensure that your business can freely operate and flourish there.
The commercial real estate world is almost certainly going to experience some major seismic shifts over the next few months and years, if early indications about the directions the Trump administration will take legislation and industry regulation hold true. It is, of course, impossible to know exactly how it will all shake out, but there is plenty of evidence to suggest that interest rates that have remained at near-rock-bottom for several years will probably begin to creep back upward. Furthermore, the very nature of commercial lending may be migrating its venue significantly.
Even though same-sex marriage has become legal nationwide, some people might still opt to use a domestic partnership as the legal basis for their cohabitation agreement. The domestic partnership has some benefits that you should be aware of so that you can decide if this is an option that you want to consider.
California commercial real estate is rarely a boring field, but the industry may be about to get considerably more interesting. Nine states considering legalizing marijuana in some form, and California's ballots feature proposal for legalizing the drug for broad recreational use. If the initiative passes, it will be a game changer in the industry, busting the legitimate market wide open. For savvy developers who have the resources and foresight to get into the game early, profits could be astronomical. For those who are further down the food chain in the marijuana hustle, not owning their own real estate may make for unbelievable headaches.
There are many ways that being a small business owner can be difficult, not the least of which is how to cope with changing marketplaces and an influx of competitors. For some mom-and-pop merchants in southern California and across the country, seeking help from local government to restrict where chain stores may and may not be located is floating around as a form of needed relief.
Regardless of what kind of business you run, in almost all cases you will eventually end up seeking out some form of commercial lease. In fact, for most companies of just about any size, going through process of either re-negotiating the lease to keep their space or searching for a new space altogether is something that happens about every three-to-five years. If you are just getting started with your commercial lease search, or if it's been a while since you've had to deal with the prospect, you may be tempted to sign a "standard" lease, without any revision or negotiation. In almost every case, this is not the most prudent possible choice.
Commercial real estate is a complex business sector with many ways that well-meaning investors can find themselves on the wrong end of a bad deal. One of the regulatory bodies that seeks to keep dealings in the commercial real estate community above board is the Financial Industry Regulatory Authority, pr Finra, a private regulatory organization. Just recently, Finra expelled a California real estate firm for apparently negligent misrepresentations to investors.
If you are considering leasing a commercial property for your restaurant, or if your current restaurant lease is up for renewal, there are some specific contractual issues that you should be sure to give some special attention. One such issue is known as the "use clause," an element of most commercial leases that can be problematic if you are not aware of its provisions. Ideally, you will be able to negotiate some aspects of the clause before signing to ensure you don't run into an avoidable conflict with the landlord in the future.
Tenants and landlords throughout the state of California can breathe a little more easily after the passage of a bill restricting the ability of law enforcement to seize real estate and other personal property. The California Assembly recently passed legislation strengthening our civil liberties of due process, and providing stricter guidelines to law enforcement for how they may seize assets they suspect may be related to the manufacture of distribution of illegal substances.