There are multiple factors that should go into making decisions about commercial real estate investments. Ohio investors may benefit from learning about some commercial economy and real estate market trends and forecasts that can affect their investments.
Investors should be cautious about immediately relying on the most popular narratives that may be circulating about the industry. Despite what is reported in notable business magazines, most of the new office buildings are being built primarily in the suburbs instead of large cities. The stories that report that tax cuts will provide a long-term improvement to the economy also are not entirely true. In reality, increasing the size of the labor force and enhancing worker productivity are the two factors that will positively improve the economy.
Unit sales are expected to decline a little in 2018. Purchase and rent prices are expected to increase due to how well the economy will perform, but buyers will be put off by the increasing interest rates and fail to meet the financial demands of sellers. The likelihood of a 5 percent to 10 percent drop in unit sales is strong.
The multifamily, industrial and retail sectors will undergo changes. Multifamily is not as strong as it was just a few years ago, and after a spike in renting during the next two years, demand will fall. The construction increase in the industrial sector that addressed the demands of online retailers for warehouses also will slow down. When it comes to retail, the number of store openings has outnumbered that of closings in 2017, and rent prices have been rising.
An attorney that practices real estate law may assist commercial real estate investors with certain business transactions. Assistance may be provided for the purchase or selling of industrial property. Investors that are having financial difficulties may be advised to file for bankruptcy to prevent foreclosure.