The United Kingdom's vote to exit the European Union sent a shock wave of uncertainty through the global financial markets, with many stocks taking a beating. However, Florida investors may be interested to learn that real estate investment trusts, or REITs, could actually be helped by the Brexit.
The value of commercial real estate in Florida and around the country plummeted in late 2008 when the Lehman Brothers bankruptcy filing triggered a financial crisis. Things remained difficult for commercial property developers for the next few years as the economy spiraled into a recession, but office space is now once again in high demand as consumer confidence has recovered and the economy has started growing again. However, the retail sector is the one area of the commercial property market that has failed to recover, and many industry analysts are extremely concerned about vacancy rates that remain stubbornly at about 16 percent.
Florida residents who are thinking about purchasing a home or investing in residential rental properties may wish to know more about some of the trends expected for 2016. This can be important for avoiding inconvenient obstacles and planning one's strategy well in advance.
Some commercial real estate developers in Florida and around the country may have been caught off-guard by the speed at which co-working arrangements and mixed-use buildings have gained in popularity. The workspace sharing company WeWork was a fledgling start up with an uncertain future just six years ago, but the New York-based company is now worth more than $16 billion. While some industry insiders may claim that this type of spectacular growth is an aberration, WeWork could respond by pointing out that its client list includes Fortune 500 companies like General Electric.
People in Florida who have been cautious savers all their lives might be looking for a way to get a bigger return on an investment. For experienced real estate investors, these cautious savers might be the answer to increasing their profit as well.