The U.S. Bank Tower once the largest building west of the Mississippi was “SOLD” by Singapore real estate company QUE Ltd. to the Owner of One World Trade Center in New York City for $340,000,000. This represents a 34% discount from its pre-pandemic valuation of $650,000,000. The transaction comes at a difficult time due to the decreased demand for office space caused by the shutdown, as many company’s offices remain barely occupied due to the fact that employees are working from home. Leasing in Los Angeles County has dropped 65% to it lowest point since the 2008 Recession.
Paley Commercial Real Estate has specialized in the sales, leasing, and managing of San Fernando Valley commercial property since 1984, and assists both large and small businesses with various types of commercial real estate requirements. Paley Real Estate continues to assist countless Landlords and tenants, despite the challenges put forth by Covid. During the pandemic our offices have remained open to serve our clients and provide the most up-to-date knowledge in relation to operating under the new guidelines. We see every obstacle as an opportunity to grow and learn, and that is what makes Paley Commercial one of the most successful commercial brokerage firms in the valley.
Since the stay at home order went into effect in March, our property management team has helped Landlords and tenants come up with solutions that both parties are comfortable with. As property managers we always do our best to see both sides of every situation and treat everyone fairly. With our guidance, many tenants have received SBA loans and unemployment which has allowed them to continue to pay rent. We have also come up with more creative solutions such as setting up temporary partial rent payments and utilizing the tenant’s security deposit to cover rent.
While we have been fortunate to have most tenants remain in the buildings we manage, there have been a couple of inevitable vacancies. During the past few months Paley Commercial has been able to lease a handful of spaces, while many buildings sit vacant. Through our 35 years of business we are trained in being able to locate and decipher whether or not a prospective tenant is qualified. We do this by meeting people in person to show space, investigating previous business and landlord references, and running an extensive background and credit check. After we thoroughly investigate the prospective tenant and decide if they are qualified, we consult with the landlord to make sure they are comfortable with the deal. We never urge an Owner to put a tenant into their building who we think might be trouble just for the sake of earning a commission. During the negotiation process we always try to keep both parties best interest in mind and be transparent. This tried and tested process has allowed us to get leases signed during the safer at home order.
Whether you are a Landlord or a Tenant and are seeking advice on an existing lease or new venture, let Paley Commercial Real Estate guide you in making the best decision for your future.