Here we are in the middle of the “Season” in the Coachella Valley.  This “Season” is unlike any that most of us can remember.  The U.S. and international financial meltdowns that have occurred during the past six months are being felt here just as they are in the rest of the country.  Hotel occupancy, restaurant, retail and service sales are down, but there is reason to be optimistic about the future.

The astute real estate investor or expansion minded business person sees opportunities during difficult market conditions like the one that we are currently experiencing. The land investor sees the presence of fewer potential competitive buyers and decreasing land prices as an opportunity to secure quality properties now at bargain prices for future development.

The oversupply of office rental space in the Coachella Valley has caused landlords to become aggressive in lowering initial rental rates and increasing tenant improvement allowances.  Office tenants looking for space have leverage that they may have never previously experienced in negotiating for space. They can choose from many outstanding location opportunities at this time.

Likewise, retail rental rates have dropped to levels that existed in 2003. The rampant increases in rental rates for pads and in-line shop space that took place over the past few years in the Coachella Valley have decreased as more shopping centers have been completed and both national retailers and restaurants have slowed their expansion plans.   Fewer tenants are competing for new retail space. Additionally, Landlords are now working with tenants to insure that the tenants’ occupancy costs are within a range that will allow the tenants to be successful if other operating objectives are achieved. These are opportunities for smaller retailers and restaurateurs who are either looking to add additional units or relocate to another facility with lower occupancy costs.

Whether you are a tenant looking for space, a developer looking for land upon which to build, a landlord needing tenants, or an investor looking for a prime office building or retail facility, the experts at Coldwell Banker Commercial Lyle & Associates can help you meet your commercial real estate needs. 

Give us a call today at 760-772-6400.