Friday, March 4, 2011

2011 Could Be Better Than Anticipated!

After a great week in commercial real estate, 2011 may be better than expected.  Several factors are contributing to the optimistic approach: First, the reduction in new developments and construction has contracted the supply allowing demand to gradually improve. Second, the improvement in the market has increased various real estate values and certain properties (based on location and type) are expecting and getting higher rents. A property that has increased rents is a big indicator to potential investors that the property is a sound investment. These indicators are speaking volumes to investors. As things gradually improve, 2011 may surpass what any of us thought.

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Thursday, March 3, 2011

Commercial Real Estate May Be Stabilizing

A decrease in construction has been assisting the Commercial Real Estate Industry in becoming more stable. The contraction in new construction has limited the amount of vacant spaces.  Apartment rent should slowly rise in correlation with the gradual increase in job growth. This increase accompanied with our younger population leaving the nest and renting for the first time should lead to a rise in apartment demand as well as prices for rentals.  The National Association of Realtors (NAR) is also predicting a decline in office & retail markets. As jobs become more available and hiring increases, vacancy rates for all markets should abate.

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