Commercial property market could see improvements
According to experts in the field, 2016 might be a strong year for commercial real estate in Florida and around the country. A May Forbes Insights survey of some 201 industry insiders revealed that around 47 percent believed U.S. markets had already entered recovery. When companies were polled, 71 percent said that the market offered sufficient investment capital, and more than half of the respondents were taking measures to secure existing low financing rates for the future.
The respondents’ general optimism was tempered by the idea that market conditions had their pros and cons. Ongoing factors like presidential elections, unemployment, domestic taxation and the world economy were all cited as contributing to investment. In addition, laws like those enforcing low-income housing placement and baby boomer downsizing trends were said to result in variable outcomes. Although 44 percent of the executives maintained that some portions of the market were prepared for major downswings, 52 percent of the polled respondents claimed to recognize the strengths of their own market sectors.
One noteworthy conclusion was that technology was making major changes in the CRE field even though the adoption rate was characterized as slow. Some companies admitted to having difficulty dealing with competitors that used novel tech, and about a quarter of all companies said that capital was only available for certain deals.
CRE deals depend on more than having a good sense of property value or access to potentially lucrative opportunities. These transactions are commonly limited by laws concerning taxation, zoning and transaction procedures. In some cases, ongoing or proposed projects in the same region might increase the difficulty of securing financing by making a given project seem less attractive to lenders. Attorneys with commercial real estate experience may be able to help developers and investors structure deals that are better equipped to overcome such hurdles.