Commercial real estate investors in Ohio are probably aware that prices are on the rise. Last year, property prices had already surpassed the peak that was reached in 2008. In the National Association of Realtors’ Q4 report, researchers noted that property prices kept rising in 2016. Many real estate analysts are still optimistic that this will continue in 2017.
Real estate analysts are optimistic about the market for a number of different reasons. One of the reasons real estate prices are expected to keep rising is that there are strong economic indicators. The U.S. gross domestic product rose in the third quarter this year, and there has been steady job growth. A report from the Bureau of Labor Statistics shows that employment is trending upwards, and there are a lot of construction jobs.
The job growth has led to higher rents and low vacancy rates in office buildings as well as demand for new office space. The higher number of jobs is also expected to create an increase in demand for apartments that are needed by employees. A property type that economists are especially optimistic about is multifamily apartment complexes. The best markets for multifamily properties are on the coasts, but they tend to be strong everywhere.
While it’s important to look at nationwide trends in commercial real estate, every real estate market will be a little bit different. An attorney may be able to help a real estate investor to determine what the best investment opportunities are in the local market and then analyze the risks of a particular investment. An attorney may also help an investor to negotiate building and lease contracts.