If you are looking to invest in Commercial Real Estate, California is one of the most attractive alternatives — if not the best. In this post, we review some of the reasons why the Golden State more than lives up to its nickname.
1. A Thriving Economy
California’s economy is country-sized. With a Gross State Product (GSP) of $3.4 trillion, California’s economy is the largest in the United States. If the Golden State were a country, it would rank as the world’s fifth largest economy, above that of Great Britain. Also, three of the 15 most populous cities in the United States are located in Southern California (Los Angeles, San Diego, and San Jose).
These are more than cool facts: The larger the economy, the more opportunities for growth and diversification in commercial real estate.
2. Foreign Direct Investment
California is also the U.S. state that receives the most Foreign Direct Investment. Foreign Direct Investment (or FDI) is when a company controls a business or corporation in a foreign country. In practice, this means that the California economy and California investments aren’t as exposed to domestic downturns compared to other states.
From life sciences and tourism to retail and tech, California’s economy is notoriously diversified. In addition to increasing overall economic resilience, diversification comes with distinct advantages for investors in commercial real estate. For example, owners of warehouses in Southern California have found a new market for their properties thanks to studios looking to convert industrial properties into soundstages
4. A Hotbed for Some of the World’s Key Industries
As part of the global reconfiguration ushered in by the pandemic, two sectors in particular have gained a new prominence: distribution and entertainment. California happens to be a key location for both industries. While the relationship between California and the movie industry is well-known, the Inland Empire (the area east of Los Angeles) has become one of the most important centers for shipping and distribution in the U.S.
SoCal CRE Team: Commercial Real Estate in Southern California
At SoCal CRE Team, we specialize in finding commercial real estate solutions for developers, investors, landlords, and tenants in the most sought-after Southern California markets such as Los Angeles, Orange County, Riverside, Anaheim, and more.
For a free commercial real estate valuation or general inquiries, contact us today by telephone (714) 456-0500 or email firstname.lastname@example.org.