Week of September 9, 2020
Back from Labor Day Weekend and things are off to a bang. A lot of wealthy customers have returned from an extended summer vacation but others have decided to stretch out their time away from Los Angeles. What they do see on their return are extraordinary tight conditions and even higher prices than when they left. Some lump all commercial real estate together but that is not the case. Los Angeles is still the pivotal jumping off points for goods coming in from Asia. Trade war or not, ecommerce sees Los Angeles as the first stop through its journey across the U.S. and vendors are preparing for strong holiday sales.
With goods flowing in, our 4.6 Acre site at 370 E. Redondo Boulevard, Gardena, CA is a perfect location for staging trucks and containers. There is a CUP in place and the property is almost ready for occupancy. The final grading and outside light repair are almost done.
There is a lot of fear in the California Commercial Real Estate Community over Proposition 15. The ballot measure will raise property taxes of commercial property to market value. Many families who have owned properties for generations could see a doubling or tripling of property tax owed. While many increases will be passed on to small business tenants, it gives companies another reason to open shop elsewhere. Retail is already gone. Office is a disaster. Apartment building owners are facing Federal and State rental moratoriums. And now many industries will find a third of their rent payments will be going to taxes. Yes, California is a great state and it needs revenue. Too bad that commercial real estate is the only thing left to tax.