California Commercial Real Estate Market Appears Stable
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Commercial Real Estate on Wednesday, October 17, 2012.
With the current rough times gripping the nation's economy, it can be easy for people to hold onto pessimistic market reports. Those who are interested in the California commercial real estate industry may be pleased to learn that the industrial market currently appears stable. Over the course of this year's summer months, very little material change occurred to adversely affect industrial real estate owners or developers.
At least two reports detailing recent trends in the commercial real estate field specifically used the word "stable" when explaining the existing market. One industry insider said that right now it appears that inventory and vacancy rates have stabilized, which is preferable to any sort of downward trend. While the third quarter did seem to show a slight decline in activity compared to the previous quarter, most experts seem to believe that 2012 as a whole will definitely show a significant increase over last year.
One brokerage firm expects to see an approximate 37 percent increase in volume compared to 2011's numbers. That firm's quarterly report showed multiple large transactions taking place during that quarter. One specific commercial real estate sale raked in a 25 percent higher price-per-square-foot than the second-biggest sale for that time period.
This definitely seems to be good news for the California commercial real estate industry. The fact that the market appears to be remaining stable right now could help many investors prepare themselves for improved growth going forward. Of course, all who plan to make any sizable commercial real estate investments should make sure that they understand their rights and responsibilities under California law to better prepare themselves for success in the future.
Source: Press-Enterprise, "REAL ESTATE: Industrial market appears stable," Jack Katzanek, Oct. 10, 2012