California commercial property owners and developers may be interested in a forecast by the National Association of Realtors. According to the trade association, commercial real estate is expected to be strong in the coming months.
The National Association of Realtors believes that the overall commercial real estate vacancy rate is expected to decline to 11.9 percent, which is a 1.1 percent overall drop. The industrial sector vacancy rate is also expected to decline to 7.8 percent and retail is expected to drop by 0.4 percent. In the multi-family sector, the vacancy rate is expected to fall from 6.6 percent to 6.1 percent.
The NAR reports that strong economic conditions are leading to more interest in commercial real estate. The NAR’s chief economist reports that stronger confidence and spending led to an expansion of 3 percent in the last quarter. While the outlook is good, prices are expected to reach a plateau, leading investors to look in tertiary markets. The apartment sector gains may slow because of the effects of Hurricanes Harvey and Irma, but overall improvements are still expected.
The forecast for the commercial real estate market may mean that property owners and developers might look forward to lower vacancy rates and increased profits from their properties. They might also be able to command better prices if they own properties in tertiary markets where investors are looking. Experienced real estate lawyers may help sellers and buyers with their commercial real estate transactions. The lawyers may conduct market research and assist with conducting due diligence to help their clients determine whether or not a proposed deal is a good choice. The lawyers may also help their clients negotiate purchase agreements and guide them through all of the potential legal pitfalls that might be involved.