COMMERCIAL REAL ESTATE FORECASTS INDICATE FLATTER PRICES
Property Rights Law Firm, P.A. on Thursday, September 27, 2018.
People in Florida involved in the commercial real estate market may be interested to know that property prices have stabilized. According to research by Green Street Advisors, this current trend is expected to last for six months to a year; they noted that commercial property prices have generally stopped their sharp upswing over the previous several years. There are a number of reasons for the change, especially because interest rates have stopped their decline and are actually on the rise.
As long as the economy continues to perform well, the Federal Reserve is expected to continue raising interest rates in order to deter inflation. At the end of September, the bank is expected to hike interest rates once more. As a result, many commercial real estate investors are concerned about a recession or a serious downturn in property prices and values. Other firms measuring commercial property prices have also noted similar trends of flattening prices or, at a minimum, slowed growth in 2018.
Different types of commercial property are performing differently, of course. Student housing, industrial properties and manufactured homes are performing the best with continued upward movement in pricing. On the other hand, shopping malls and strip retail centers are seeing price declines, potentially reflecting an overall decline in brick-and-mortar retail alongside the rise of e-commerce. However, some have noted that industrial prices have seen some troubling declines in recent months, and experts have noted that trade disputes could bring greater uncertainty to the sector.
When people are considering entering the commercial real estate sector as an investor or buying or selling property, there are an array of complex decisions and contracts involved. A real estate attorney may review contracts and work to protect a client's interests in a deal as well as represent a client through disputes that might emerge over construction or property management.
