How to Benefit from the Commercial Real Estate Revolution
The world of real estate is constantly changing, so it should come as no surprise that new trends have been introduced over the past few years. One of the more common trends that we are now seeing is a lack of need for commercial property, as countless offices are now laying vacant. It is believed that the vacancies in commercial properties will continue to increase moving forward and, as a result, rent prices will drop for all sectors of real estate. The number of distressed sellers on the market is created a great situation, however, for liquid investors who can pay cash for these properties.
Distressed properties will be sold at “bargain basement” prices to buyers who are able to pay cash. This does not mean that the property can be immediately flipped for a profit, but it does mean enormous profit potential for those individuals who are willing to hang onto their real estate bargains until the market trend is once again on an upswing. Some people will be able to change their entire future by knowing how to make a wise investment in real estate at the right time. You don’t even have to wait very long to realize a profit because an upward trend is expected to occur before the last quarter of 2012. Although the high interest rates that are still in effect are largely responsible for the sluggish at the present time this should change by the end of the coming year. As 2010 draws to a close real estate analysts predict that the amount of capital investments in commercial properties should be on the rise.
People need to be aware of the fact that the trends in real estate will differ depending on geographical location. One such difference is noted in the property markets that include our nation’s capitol city and the immediate surrounding areas. Although vacancy rates have risen there have been fewer problems noted regarding the commercial and residential real estate markets. This is thought to be due to the fact that funds used for medically related spending has enabled more of the local businesses and industries to weather the recession. It seems that there have been some major changes in San Francisco as well. The decreased occupancy rate, lower rents and plunging purchase prices have transformed this city into a buyers’ market.
The city of Austin, Texas is a thriving, expanding community that encourages business and industrial growth. These factors help keep the local economy stable which is a “pro business” attribute that makes this region a magnet for anyone who wants to transact any commercial real estate deals in a setting that is strictly a “sellers’ market”. In the northeast the trends depend upon the city in question. Boston, Massachusetts continues to hold their commercial vacancy rates below 10% which means that the town will weather the recession relatively unharmed. On the other hand, New York City has taken some tough blows and office rentals have fallen more than 40%. Sharp investors know that people are going to balk at paying their asking price and are choosing to sit tight and hold onto their real estate until the markets change.
Any time statistics show lower property values and less demand by consumers it is troubling to property owners. However, these same facts are welcomed by eager investors who know the profit potential that awaits them. Those that plan to buy must do so without having to rely upon the rental income to make the deal work. Then they can hold onto their real estate purchase and ride out the rest of this presently sluggish realty trend. Once the market has an upward shift they can then realize their profits.
Karen Lissack has been reporting about real estate and home related subjects for close to 15 years. She will help you with information in any aspect in real estate from buying to selling, even investing. She is fully informed about chapel hill real estate and has helped people find the best chapel hill homes the market can offer.
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