Hotel sales in California rose during the first six months of 2016. However, the pace of commercial real estate transactions involving hotel properties is slower than it was during this period last year. Still, hotels overall remain strong performers in the state.
People selling commercial properties in California have experienced huge benefits from today's lack of balance between demand and supply. This is especially true for people in Southern California. However, in light of today's climate, where there is strong demand and too little supply when it comes to commercial real estate transactions, buyers are becoming savvier.
California continues to be a hotspot for real estate, in both the residential and commercial real estate markets. One of the major commercial real estate transactions that has taken place recently is the purchase of a technology campus for a whopping $725 million. Alexandria Real Estate Equities just purchased the property from DivcoWest.
Tangible assets this year are receiving more emphasis as an alternative investing option for investors of high net worth. These tangible assets include commercial and residential real estate properties in California and other states. A recent survey showed that about 60 percent of high-net-worth individuals felt optimistic about investment in land and timber and in real estate compared with other investment options, such as private equity, hedge funds, bonds and stocks.