While the U.S. economy has proven to be a little shaky, general signs of growth have given hope to the commercial real estate market. For instance, if interest rates are going to remain relatively stable in the next year, property value will likely remain stable with the natural benefit from the cost of borrowing. However, if interest rates see a spike, the prospect of a bubble comes into play and thus could impact commercial real estate negatively.
While the economy is certainly tricky, there are a few trends that seem to be forming in relation to commercial properties throughout the country. Some of the most interesting commercial real estate trends to watch are as follow:
- The multifamily sector is projected to lead the pack in property development
- Pricing will continue to appreciate, thus propelling cap rates to record lows
- Property prices will likely stabilize
- Student housing, industrial, and manufactured homes will continue to perform well
- Regional malls and strip centers will continue to see price drops
- Foreign investors will still be chasing U.S. assets
- Job growth should positively impact new real estate opportunities
With the economy on an upswing, commercial real estate is expected to continually reap the benefits. However, if growth slows in the years to come, the number of property transactions is likely to decelerate. Our firm has represented individuals, corporations, limited liability companies and estates in their acquisition, sales, refinancing and development of every type of commercial property in Illinois. Whether you are a buyer, a seller or a tenant, The Law Office of Brenda Murzyn, P.C. will protect your rights and best interests in the purchase and sale of apartment buildings, office, retail, and industrial space, warehouse and vacant land.