Considering Commercial Real Estate Investments In The New Year
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporationposted in Commercial Real Estate on Tuesday, December 27, 2016.
As 2016 winds down to a close, many in California are compiling lists of resolutions for the new year ahead. A common practice throughout the nation, some include goals for physical fitness or education endeavors, while others focus more on financial stability and business investment ideas. The recent presidential election has apparently had some effect on commercial real estate, leaving many to wonder whether purchasing, selling or avoiding the industry altogether is the best choice for 2017.
Opinions regarding the stability of the post-election commercial real estate market vary. Some consider rising interest rates a red flag signal of the market's decline. Others, however, expect that higher inflation will have a positive influence on the market as a whole.
Property prices in October of this year as compared to those of the same month the previous year are said to have increased approximately 8.6 percent. Multifamily property prices soared 12.6 percent higher, making this type of commercial real estate investment very attractive. Some say interest rates are bound to stabilize and may even decrease as the new year gets underway. Also, recent trends show prices rising faster in business districts and suburban areas over other types of property.
Whether one is entering the market for the first time or considering changes or upgrades to past investments, it is typically best to consult with a business and commercial law attorney before finalizing any deals. Laws regarding such matters vary by state, and clarification on California law may be sought before buying or selling a commercial property in this state. By requesting a consultation with an experienced business attorney, buyers and sellers can protect their bottom line interests and maximize options for potential success.
Source: richmond.com, "Commercial Mortgages: Commercial real estate market is mixed since the elections", Andrew Little, Dec. 18, 2016