Local

What business owners are saying the high cost of real estate – San Bernardino Sun

I am busy with counseling from the management. As you can see, my commercial real estate business focuses on family-owned manufacturing and logistics companies in transition.

In many cases, this migration will make decisions about those locations. As an example. Let’s say your business is considering a merger. When two groups become one group, there is duplication of facilities and in some cases overcapacity.

Our service is engaged in disposing of surplus by selling or subleasing unnecessary space. Expansion into another state also requires a partnership with us. Residents can find the vacant house they need and negotiate for rent or sale. A dramatic increase in orders can lead to the need for larger buildings.

Yes, we have seen the transition a lot lately.

But today I would like to focus on the conversations I have outside of entrepreneurial commercial real estate concerns. After all, small businesses are the structure of our economy and employ a significant proportion of our employees.

In my 40 years as a commercial real estate expert, I’ve never heard of such anxiety.

Hiring is difficult. The 2020 pandemic has forced many into unemployment rolls. To counter this, state and federal governments have created unemployment benefits that can reach $ 1,000 a week in some cases. In addition, the period during which unemployed or temporary leave workers can receive these benefits has been extended.

As a result, workers can lead a fairly good life without working. Now that the economy has resumed, manufacturing and logistics companies are having difficulty returning their employees to factories.

There is a serious shortage of candidates available for recruitment. Even before the pandemic, it was difficult to find skilled workers. There was a shortage of people to operate specialized equipment such as machining. Currently, it is completely impossible to hire these professionals. In addition, our community college was not designed to prepare students for a manufacturing career.

Raw material prices are skyrocketing. Copper, petroleum, plastic resin, building materials, wood and steel are all very scarce. I doubt, do I say? Go to your local Home Depot and check the price of 2×4 timber. We recommend that you bring a mortgage broker with you as you may need a second mortgage in your home when you make a purchase.

Manufacturers are in dire straits at every stage: inventories of enough parts to make their products, rising wages for the employees who run machines, and rising gasoline prices, which drive up transportation costs. Expect your notebook to be affected in the end.

Is the lawn more green? Regardless of the size of the surgery, many of the people I’ve talked to are considering moving out of California. But are other states really acceptable? Yes!

I’m back from a trip to Georgia on behalf of one of my clients. They asked us to have three facilities nationwide, one in the western United States, one in the central United States, and one in the eastern United States.

Georgia and individual communities have found it very easy to accept more than 200 jobs that clients offer to the local economy. Incentives, deregulation, property tax rebates, streamlined building permits, sales tax reductions, industrial development bonds, employee training and tax credits for employment are all on the table.

We were shocked by the red carpet that was deployed to meet the requirements. And I thought the red carpet could only be seen at the Academy Awards here. Boy, was I wrong!

Government overkill. AB5, new AQMD requirements, minimum wage increases, noise reduction, and long-term licensing processes all affect the operation of manufacturing or logistics companies.

Combined with some uncertainties about property taxes, increased long-term capital gains, the possibility of abolishing tax deferrals, and the ridiculous pricing of commercial real estate, why owners are sleeping in the middle of the night You can get the feeling of.

California, which I remember, provided a platform for embracing and succeeding in small businesses. Hewlett Packard, Disney, Microsoft, Apple, and Amazon all started with someone’s garage dream. Hey, how far have you drifted?

SIOR’s Allen C. Buchanan is a principal of Lee & Associates Commercial Real Estate Services in Orange.He can reach at abuchanan@lee-associates.com Or 714.564.7104.

What business owners are saying the high cost of real estate – San Bernardino Sun Source link What business owners are saying the high cost of real estate – San Bernardino Sun

Related Articles

Back to top button