Commercial real estate has a bright future in New York. What has traditionally been deemed a safe investment took a serious beating in the last recession; but since then it has seen steady growth as the national job market improves. As a matter of fact, a recent report by the National Realtors Association suggests that rents for commercial real estate are primed for growth for the remainder of 2013 and into 2014 as well.
According to the report, rents for office space are expected to rise by 2.5 percent this year, as well as 2.8 percent next year. The report also indicated that occupation is expected to increase, with 30.1 million square feet of new and existing space to be absorbed this year and more than 40 million to be used next year.
The report examined a number of commercial real estate segments, including industrial space (including facilities used for warehouses), retail space (including shopping centers, fast food outlets and coffee shops) as well as residential apartments. Industrial and office spaces were predicted to see generous gains with rent increases while retail spaces would only see modest gains.
Analysts believe that the growth in the market is driven by the steadily improving job market. Total job numbers are still below pre-recession numbers, which is a prime indicator that there is still room to grow within the existing market.
This view suggests that there are ample financial opportunities for those seeking to purchase real estate, and that working with an experienced real estate attorney is essential.
Source: WorldPropertyChannel.com, US commercial rates moving higher, August 26, 2013