Monthly Archives: August 2016

Our very own Eric Christopher, a Senior Associate here at INCO Commercial, was featured in an article last week from the Press-Telegram. The article discusses the revitalization of Downtown Long Beach, with rising rent prices, eager investors, and the impact on the local residents.

The new face of Downtown Long Beach is much different than its difficult past. According to the article, the area was infested with crime in the mid-90s, producing 25% of the area’s crime rate, yet only accounting for 3.5% of the Long Beach population. However, community and city leaders banded together to clean up the area and its reputation. This proved quite successful, as we have been witnessing the effects of their efforts.

For the past couple of years, investors have been reinvigorating the Downtown Long Beach scene, buying up old apartment buildings and creating new, enticing developments. Christopher notes that a recent growth in income has encouraged an influx of offers on apartments, often times sight unseen. He also indicates that a trifecta of low interest rates on building sales, increasing rents, plus a large population of people who can’t afford a down payment on a single family residence help contribute to these gentrification trends seen in downtown Long Beach. Though rents are increasing in the Downtown Long Beach area, they are still much cheaper than neighboring cities of the Los Angeles area, thus bringing in tenants willing to get in on this boom.

For the full article, please click on the link below:

Downtown Long Beach Revitalization: Urban Renewal or Economic Cleansing?

It’s old hat to even the most novice investors that location is essential in any kind of real estate investment. However, there are several layers to this tried and true cliché. INCO Commercial explores some of the deeper reasons why “location, location, location” is key in commercial real estate.

Zoning

Zoning will play a crucial role in your decision to buy or invest since it will dictate the allowable uses for the property or building. INCO Commercial’s expert knowledge of the Long Beach and surrounding areas will help you explore the different properties available for your zoning requirements. Our agents will also ensure that a zoning verification letter from the local municipality is on file, which will disclose in full detail the zoning allowances for the particular property.

There may be additional limitations on the property itself, depending on what kind of neighborhood it exists in. Some historical properties or neighborhoods will have restrictions on the kinds of updates allowed on both the exterior and interior of a structure.

The actual title and land surveys will also help outline important features, restrictions, and history of the property. The survey can also reveal if the property has insurable access, meaning it has legally deeded access to the roads adjacent to the property. If there is no accessible road directly in front of the property, an easement may be required; an easement allows legal access through another person’s property.

These kinds of details are crucial to know before securing a property. By working with INCO Commercial, you can rest assured that our agents will cover all of the necessary bases to guarantee you have full disclosure of the property before making your decision.

Environmental Assessments

This is where the history of the building comes into play. Any prior use of chemicals on the property can cause potential problems. For example, if a building was previously owned by dry cleaners, gas stations or any business involving chemical usage, this must be addressed. Additionally, it is not only important on the property of interest, but the adjacent properties as well. You should expect to have a brief evaluation done of the neighboring properties, to ensure you have done your due diligence on a potential investment. INCO Commercial’s extensive industry experience will help outline each necessary step in the acquisition of your property.

Flood Zones and Seismic Activity

It is highly suggested to obtain flooding and seismic reports, to determine if the property could sustain significant damage, and to see what kind of additional retrofitting or precautions are required to sustain the least damage to the property. INCO Commercial can also help determine if these things are necessary due to any new legislation.

Proximity to Traffic and/or Resources

Location is also a priority in terms of what is important to your business. Retail and restaurant properties obviously fare better in high-visibility or high-traffic locations, relying in part on that exposure to entice customers. Further, knowing the demographics of the area, and what type of customer the business would attract help ensure success as well. If you have a new business and are unsure in which demographic your business would best succeed, INCO Commercial can help examine this with you. Comparing similar businesses, as well as their locations and other factors can help predict an ideal location for your endeavor.

A warehouse or industrial business would benefit either having access to a major highway or even a nearby port, such as the Port of Los Angeles or the Port of Long Beach. Efficiency in transportation helps cut time and costs on both the outgoing and receiving end of things.

Businesses that do not require foot traffic still need to pick a strategic location to satisfy their employees. This can involve choosing a location central to where employees are commuting from, but also proximity to restaurants, cafes, or other things that can perk up the work day and ultimately improve employee productivity.

Working with Your Investor

Choosing a property and confirming due diligence is done on the property can be an intimidating process. Working closely with an investment broker like INCO Commercial can help relieve some of the pressure off your shoulders. We have fine-tuned our process in our 40+ years of experience, but we also incorporate the latest trends and developments into our strategies to best serve our clients.  

No matter what kind of commercial real estate interest you have, INCO Commercial can help you assess what would be the wisest investment options available to you. Our agents’ intimate knowledge of the local Long Beach and surrounding areas can help guide you to properties that would best fit the demands and dynamic of your business. INCO Commercial and our affiliates, IMC Municipal Consulting and CORE Property Management are dedicated to assisting our clients and maximizing their success.

Explore the rest of our website for a full explanation of INCO Commercial’s services, and visit our contact page to find the office location and contact information most convenient for you!

INCO Commercial is proud to share two articles from the Long Beach Business Journal featuring two of our top team members.

From the ‘Business Improvement Districts’ section, the second article down entitled “Magnolia Industrial Group” highlights the improvement of a particular industrial area that had suffered a loss of interest and investment due to its past history of crime and other problems. Magnolia Industrial Group (MIG) board member and INCO Commercial president, Bill Townsend, along with area property owners and assistance from the City of Long Beach have spearheaded this effort. The MIG Property and Business Improvement District (PBID) is the first of its kind in an industrial zone. The project has seen great success in restoring confidence in property owners for that area, due to one key feature: private security.

Click on the image below to read a PDF of the full article.

In another article, entitled “Low Interest Rates Forecasted to Persist, Driving Buyer Demand for Residential Properties,” an INCO Commercial senior associate, Eric Christopher discusses taking advantage of the economy’s low interest rates. Christopher specializes in multi-family properties and sees a great opportunity in the Long Beach area for multi-family investors due to the combination of low interest rates and rising rental costs. He indicates that with the interest rates as low as they are, the next five to seven years promise great cash flow on a fixed-rate loan.

Please click on the images below to read the full PDF article.

“Low Interest Rates Forecasted to Persist, Driving Buyer Demand for Residential Properties” 

“Interest Rates” cont’d

 

 

 

 

 

 

 

 

 

 

 

We are proud of our team at INCO Commercial. Our relationships and connections with local businesses and organizations have provided a positive, lasting impact in developing a stronger community. Learn more by exploring our website, or visit our contact page to reach out to the office nearest you!