Overall, commercial real estate executives in California and throughout the country think the market generally looks good for 2016 although some sectors are still suffering nationwide. This is based on a survey of senior executives conducted by Forbes on behalf of CIT from Feb. 12 to March 14.
Just over half of the executives surveyed rated their market segments as strong or very strong while 47 percent agreed or strongly agreed that the commercial real estate markets are recovering. However, 44 percent also felt that several segments were on the decline. Most thought that tech companies were significantly changing the commercial real estate landscape although only 11 percent said they tended to adopt new technologies quickly.
Unemployment, interest rates, the global economy, U.S. tax rates and consumer confidence were all cited as the most important factors that affected investment in commercial real estate. There was little consensus as to the effect of downsizing baby boomers on commercial real estate as well as the practice of mingling lower- and higher-income housing. Around 24 percent said that capital is only available for select deals while 71 percent felt there was enough capital available for investment.
A person who is considering investing in commercial real estate, whether a shopping mall, industrial property or in some other segment may want to work with an attorney. From matters involving the process of buying and selling to contract disputes, zoning problems and litigation, an attorney may be helpful. Even an experienced real estate investor may not always be current on any changes to federal, state and local laws or to unusual circumstances that may arise in the course of ownership.