September 2015

The Impact El Nino May Have on Commercial Real Estate

September 15, 2015 was the second wettest day of rainfall since 1877 in Los Angeles County on record.  Weather experts are forecasting El Nino conditions may create rain storms of cats and dogs in Los Angeles.  Flooding rains are expected to peak from October to January and could create damage to infrastructure.  Experts warn this could turn into the worst El Nino on record.

Commercial property management begins preparation for the winter season starting in late August because historically the rainy season starts in November.  

If a tenant has a triple net lease where he or she is responsible for the maintenance, it is recommended that the property manager notify the tenant to prepare for the heavy rain season now to avoid damage and costly repairs.  However, the Lessor may not have a property manager due to the triple net lease.  Consequently, it is imperative for the owner to meet with the tenant or have a contractor inspect the premises.

Good property management checks the following items to prevent damage in heavy rain: 

  1. Roof damage prevention inspections for repairs or replacement
  2. Cleaning drains on roofs and patios
  3. Paving repairs for pot holes or superficial cracks that need small repairs or slurry
  4. Inspecting of sump pumps for replacement. 

Segal Commercial Properties can make recommendations for contractors to perform inspections or repairs if the owner of a property does not have a reputable company on hand.

“I had a client involved in a real estate matter who needed intensive guidance fast. Lee was able to guide him every step of the way, helping him evaluate properties for potential investment, as well as connecting him with other needed professionals. If Lee doesn’t know the answer when it comes to commercial real estate, he knows someone who does.”  
Jacob Lager, Partner, Zuber Lawler & Del Duca LLP