California Commercial Estate Market Witnessing a Surge
California is witnessing a surge in property investments.
A number of prospective business investors are being drawn to the region as it offers affordable rents and is a good market to capture. Industry experts believe the prices and values of properties will rise in the near future, reports The Miami Herald.
Since the vacancy rates were high in the area, people expanded or set up base in the area. Similarly, investors are eyeing properties in Sacramento and are willing to invest more in the state, reports The Kansas City Star.
In December 2012, a New York based investment company, DRA Advisors and a San Diego realty firm, Westcore Properties, shelled out $600 million to acquire a number of office buildings and warehouses, reports McClatchy.
Super Market chains like Whole Foods and Fresh Market have also set up shop in Sacramento's commercial market. Small business holdings like Take Track 7 Brewings are also expanding their premises, reports the Herald.
A recent CBRE report predicted that the state would show strong signs of recovery and profit in retail, office and industrial areas. However, it would take some time for the tide to turn, according to The Sacramento Bee.
CBRE is a commercial real estate company based in Los Angeles.
Some experts expressed skepticism about the improving commercial market of the state.
"For now, Commercial's not getting better. It's just not getting any worse" Scott Kingston, deputy president of Ethan Conrad properties told The Herald.
Kingston claims that the commercial real estate sector is lagging about 18 months behind the residential sector in the state, reports The Herald.
With more number of investors pooling in, 2013 should prove to be a good year for the commercial real estate markets of California.