<![CDATA[In a word, YES! The commercial real estate market is directly affected by what happens in the residential real estate market. In the commercial world they differentiate sectors: industrial, retail, office, land, and investment. We could take them one at a time to explain how each sector is affected but I can say simply, commercial real estate follows the housing market. As our housing market continues to improve, every sector of the commercial side will improve. Not all will improve at the same time but slowly each will come around. We are already seeing the investment side improve as investors recognize the value in the home prices and they are enjoying a higher return with the properties being leased. Land is currently active as home builders are taking advantage of the bank-owned and price reduced parcels even if it is just to warehouse the land for future need. The industrial and retail sectors will continue to improve as home buyers get back in the trend of fixing up their homes. Office will be last but this too will happen as companies start to hire. 2012 is looking a lot like 2011 where they both started strong and then slowed considerably midyear. There is some speculation that the US economy is waiting for our upcoming election. It does appear that the banks are easing up and commercial lending is again happening. The lower interest rates currently helping the residential world are playing an important part of the commercial buyer’s decision making. Election or no, hold on as I do believe both the housing market and the commercial market will improve, slow as it may be. But improve they will.]]>
November 12, 2012November 12, 2012
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