Studio/Warehouse space noob post
Hello, I'm interested in a warehouse space purchase to convert into artist studios. I'm an artist myself and I'm sick of renting something I will need for the rest of my life. 
This is the first time I have really thought about this and I'm curious if anybody has any resources or information they could pass onto me.
Just off the bat I have 10-20 people within my inner circle of friends who are wanting to rent new spaces and this is what has made me interested in this investment. 
I'm in Los Angeles if that helps.
[{"id": "cl6ucdy", "text": "Highly relevant to my own situation.  I'm in Portland area, myself.", "replies": [], "depth": 1}, {"id": "cl6uqcf", "text": "I'm unsure where to look/who to get in contact with, laws regarding splitting a spot up and renting it(zoning), etc...", "replies": [{"id": "clgpsuv", "text": "Identify the general parcel info here:\n\nhttp://zimas.lacity.org/\n\nRead the zoning bylaws/ordinances here:\n\nhttp://planning.lacity.org/", "replies": [], "depth": 2}], "depth": 1}, {"id": "cl6vvxd", "text": "Talk with a legit agent in the area.\n\nSpecifically - zoning would be the biggest issue.  I deal only in commercial/industrial spaces - and am not an agent either!", "replies": [], "depth": 1}, {"id": "cl7b2c7", "text": "Conversion of industrial to creative office or residential has been picking up considerably in the last decade. In Culver City, it's conversion to office. In Downtown, to residential. THe challenge is making sure the building you want has zoning that will allow artist studios. \n\nThe prices of warehouse buildings in the general LA area have gone up about 10% in the last year, 25% up from the pits of 2009. Fundamentals remain very strong and most in the industry are bullish on values in the near term, with a placeholder on interest rates.\n\nSource: i am an industrial broker in Los Angles. Over a decade experience. I can help you find a broker if you'd like.\n", "replies": [{"id": "clg56mo", "text": "Any suggestions on leasing vs buying? I'm looking at downtown, pasadena, eagle rock, glendale to name a few. Staying away from the west side.\nI have already checked about zoning and I don't think it is going to be a problem, most of the commercial and industrial zones allow artist studios.", "replies": [{"id": "clhnxx7", "text": "The lease v buy analysis has a lot of variables specific to your situation. Let me know if you'd like to discuss outside of reddit. Either way, good luck!", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "cl7ds2q", "text": "Pros and cons from people I know who did it:\n\n- Remember environmentals.\n\n- Zoning went easier than expected (YMMV) in part I feel because even bureaucrats like getting behind a \"cool\" project.\n\n- The money itself is pretty good, but...\n\n- ...day-to-day operations take up a lot more time than anticipated, to the point that one of the partners is getting out in order to have time to do his work. Particularly if you have smaller studios, friends or no, you will have lots of turnover and a moderate amount of problems with cash-strapped artists to always deal with. You can avoid some of the issues by moving into bigger, live-work spaces, but that's a whole different ballgame.", "replies": [{"id": "clg56rj", "text": "Environmentals?", "replies": [{"id": "clgljpm", "text": "[Phase I](http://en.wikipedia.org/wiki/Phase_I_environmental_site_assessment) et cetera. ", "replies": [{"id": "clglkbv", "text": "#####&amp;#009;\n\n######&amp;#009;\n\n####&amp;#009;\n [**Phase I environmental site assessment**](https://en.wikipedia.org/wiki/Phase%20I%20environmental%20site%20assessment): [](#sfw) \n\n---\n\n&gt;In the United States, an __environmental site assessment__ is a report prepared for a real estate holding that identifies potential or existing environmental contamination [liabilities](https://en.wikipedia.org/wiki/Legal_liability). The analysis, often called an __ESA__, typically addresses both the underlying land as well as physical improvements to the property. A proportion of contaminated sites are \"[brownfield sites](https://en.wikipedia.org/wiki/Brownfield_site).\" In severe cases, brownfield sites may be added to the [National Priorities List](https://en.wikipedia.org/wiki/National_Priorities_List) where they will be subject to the U.S. Environmental Protection Agency's [Superfund](https://en.wikipedia.org/wiki/Superfund) program.\n\n&gt;====\n\n&gt;[**Image**](https://i.imgur.com/yHSvu3c.jpg) [^(i)](https://commons.wikimedia.org/wiki/File:Air_.pollution_1.jpg) - *Any piece of real estate can be the subject of a Phase I ESA.*\n\n---\n\n^Interesting: [^Indoor ^air ^quality](https://en.wikipedia.org/wiki/Indoor_air_quality) ^| [^Environmental ^remediation](https://en.wikipedia.org/wiki/Environmental_remediation) ^| [^Partner ^Engineering ^and ^Science, ^Inc.](https://en.wikipedia.org/wiki/Partner_Engineering_and_Science,_Inc.) \n\n^Parent ^commenter ^can [^toggle ^NSFW](/message/compose?to=autowikibot&amp;subject=AutoWikibot NSFW toggle&amp;message=%2Btoggle-nsfw+clglkbv) ^or[](#or) [^delete](/message/compose?to=autowikibot&amp;subject=AutoWikibot Deletion&amp;message=%2Bdelete+clglkbv)^. ^Will ^also ^delete ^on ^comment ^score ^of ^-1 ^or ^less. ^| [^(FAQs)](http://www.np.reddit.com/r/autowikibot/wiki/index) ^| [^Mods](http://www.np.reddit.com/r/autowikibot/comments/1x013o/for_moderators_switches_commands_and_css/) ^| [^Magic ^Words](http://www.np.reddit.com/r/autowikibot/comments/1ux484/ask_wikibot/)", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "cllhwlg", "text": "I'm in the process of doing this exact thing in salt lake city. I'm new to commercial/artist studios but not necessarily to real estate. There are some great comments on here about what to look for. Some even mention mistakes that I made on this project... shoulda asked here first.\n\nSome additional stuff. Protect yourself, set up a holding company and a leasing company. Talk to a lawyer to see how its best done in LA. \n\nA lot of people told me they were interested and when it came time most backed out. Literally, not one person who initially said they were in has rented, everyone here currently came after the fact. So pre-lease if you can. Get them to at least do a letter of intent and a deposit. These can possibly help with the bank too, showing you have income streams coming. \n\nProtect yourself!!! Make everyone get their own insurance and have them list you as additional insured!\n\nAnd like others have said, get an agent to help, especially if you are not comfortable with with purchase contracts on commercial, which can be complicated!!!\n\n\nI'll say it one more time... protect yourself. \n\nCheers and best of luck.", "replies": [], "depth": 1}]