It is no secret that Los Angeles is a competitive, expensive place to run a business. However, in many industries, there is almost no choice but to secure space in the city. As difficult as that already is, it could be especially challenging for people looking for specific types of space.
Recently, The Real Deal reported that Los Angeles and Ventura counties have the lowest percentage of industrial vacancies among the major hubs across the country with just 1.4 percent vacancy. It also states that soundstage space in Los Angeles County is at 92 percent capacity.
What do low vacancy rates mean for businesses?
With such little existing and planning space for these and other specific purposes, people looking to buy, develop or lease in Los Angeles could be in for a fight.
Parties interested in these spaces may be confronted by smaller venues than they hoped, or less desirable locations. And these spaces can come with higher price tags than ever, as well as reluctant sellers.
Lease terms could also be especially restrictive, which could present complications for renters.
Further, offers could be highly competitive, affecting everything from price to contingencies. Small businesses in particular could face challenges when they are fighting for the same space that streaming, tech and industrial giants are looking for.
Finding the right place for your business
With such a competitive market right now, it can be difficult for anyone to find the perfect space for their enterprise. However, it can be a little easier when you know what you need, what you can pay, what you will accept and how to negotiate a purchase or lease agreement.
Understand, too, that compromise can be inevitable, whether it means a smaller space, lengthier lease agreement or buying outside the city limits. However, you should not make concessions that put you at risk of a legal dispute over matters including title defects, boundary issues or unfair lease terms.
When it comes to finding industrial, creative, office or warehouse space, it can be wise to consult an attorney familiar with commercial real estate. This support combined with a thorough understanding of what you need can make it easier to find the right space.