What business owners say about the high cost of real estate – San Bernardino Sun

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I am in the business of consulting 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 these locations. As an example. Let’s say your business is considering a merger. When two groups become one group, there is room overlap and in some cases overcapacity.

Our service is engaged in the disposal of surplus by selling or subletting unnecessary space. Expansion to another state also requires a partnership with us. Residents can find the vacant home they want and negotiate a lease or sale. A sharp increase in orders may lead to the need for the construction of large buildings.

Yes, we have seen a lot of transition lately.

But today I would like to focus on the conversations I have, beyond the commercial real estate issues. After all, small business is the structure of our economy, which employs a significant portion of our employees.

In 40 years as a commercial real estate expert, I have never heard of such concerns.

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

As a result, workers can lead a fairly good life without working. Now that the economy has recovered, manufacturing and logistics companies are struggling to get their employees back to factories.

There is a serious shortage of candidates for employment. Even before the pandemic, it was difficult to find skilled workers. There were not enough people to work with specialized equipment, for example, with mechanical processing. At the present time it is absolutely impossible to hire these specialists. In addition, our community college was not designed to prepare students for industrial careers.

Raw material prices are skyrocketing. Copper, oil, plastic resin, building materials, wood and steel are very rare. Do I doubt what I’m talking about? Go to your local home improvement store and check the price of 2 × 4 lumber. We recommend that you bring your 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 all stages: stocks of parts sufficient to manufacture their products, rising wages for employees who operate machines, and rising gasoline prices that drive up transportation costs. Expect your laptop to suffer eventually.

Is the lawn greener? Regardless of the size of the operation, many of the people I spoke with are considering relocating from California. But are other conditions really acceptable? Yes!

I returned from a trip to Georgia on behalf of one of my clients. They asked us to have three institutions across the country: 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 over 200 jobs that clients are offering to the local economy. Incentives, deregulation, property tax incentives, simplified building permits, sales tax cuts, industrial development bonds, employee training, and tax incentives for employment are all on the table.

We were shocked by the red carpet that was rolled out as required. And I thought the red carpet could only be seen here at the Academy Awards. God, I was wrong!

The government is superfluous. AB5, new AQMD requirements, higher minimum wages, lower noise levels and long-term licensing processes all affect the operation of manufacturing or logistics companies.

Combined with some uncertainty over property taxes, increased long-term capital gains, the possibility of tax deferral cancellation, and ridiculous commercial property prices, you can get a feel for why owners are sleeping in the middle of the night.

The California I remember provided a platform for small business outreach and success. Hewlett Packard, Disney, Microsoft, Apple, and Amazon started out with someone’s garage dream. Hey, how far have you come?

Allen S. Buchanan of SIOR, Head of Commercial Real Estate at Lee & Associates at Orange. abuchanan@lee-associates.com Or 714.564.7104.

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