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The following article was published in our article directory on June 24, 2013.
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A More Positive Outlook on Commercial Real Estate in 2013

Article Category: Real Estate

Author Name: Kevin Millott

Despite encountering a couple of bumps on the road, the projection for commercial real estate in the US for the rest of 2013 and beyond is relatively positive. Of course, by "bumps" we are referring to the federal sequester that happened early this year, and the corresponding fiscal cliff deal which left the greater majority of populace breathing a small sigh of relief. Though admittedly, no one is really checking to see if those who earn more than the average man-on-the-street still find their higher-than-normal taxes worth sighing over... or snorting with vehemence, whichever may apply in said situation.

And by "relatively positive," we mean that: though many business sectors are still cautious, even hesitant about declaring that commercial real estate would become profitable once more in the very near future, findings show that this particular market trend is indeed heading in that direction.

Though the recent recession has contributed to the rise of unemployment and the closing down of businesses in multiple sectors all over the country these past couple of years, economic analysts have discovered a silver lining.

With the Gross Domestic Product or GDP growth improving despite these aforementioned bumps on the road, things may turn significantly around in the next 2 years. According to these analysts, they foresee a steady decline of unemployment in the coming months, which can be triggered by the sharp rise of micro businesses brought on by a growing number of entrepreneurs who want to extend their existing online business ventures.

This means that more entrepreneurs will try to establish new brick-and-mortar shops. Those who lost their places of business during the recession might try to reestablish their commerce once more. At the same time, existing and/or larger commercial enterprises will be able to expand to different cities and hire the necessary personnel to populate these new premises, as before.

Naturally, for people who are in the commercial real estate industry, this is particularly a great forecast. As of late, there have been too many potentially profitable buildings and office spaces that remain vacant. Unfortunately, commercial real estate properties gathering dust does not readily translate to reliable income for brokers all over the country.

However, the silver lining seems to be growing larger for real estate brokers nationwide. According to market research based on economic studies, there is a growing trend of micro and smaller businesses investing on commercial spaces while the rent or sale prices of the properties are relatively low. Despite the modest price tags, this is a far better alternative to vacant, non-income generating commercial properties. Now, the next step is to simply wait for the larger and more established commercial enterprises to follow suit. This will help stabilize property prices, and make commercial real estate in demand and more importantly, profitable once more.

Keywords: Commercial Real Estate

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