A recent report by the National Association of Realtors shows that commercial real estate activity should continue to expand in 2016.
According to “Expectations & Market Realities in Real Estate 2016 – Navigating through the Crosscurrents,” commercial real estate activity will grow moderately and gradually this year, thanks to steady job growth and leasing demands. The report says that demand for commercial space remains steady across all sectors. Commercial real estate might be the best investment for you to make in 2016.
“Historically low interest rates, especially in treasuries, combined with commercial real estate’s stable prices and value make this asset an attractive investment,” says Ken Riggs, president of Situs Real Estate Research Corporation. “Looking into 2016, the commercial real estate market should moderate, which could stabilize prices.”
Throughout 2015, we saw demand increasing and supply dwindling for real estate. This is another reason why commercial real estate activity in the next year will be busy. Rents will rise and investors will see good returns.
“Supported by solid hiring in most parts of the country, the demand for ownership and rental housing will continue to increase in 2016 despite another year of meager economic expansion,” says Lawrence Yun, NAR chief economist. “While supply shortages will weigh on housing affordability and push home prices and rents higher, the housing sector will keep the U.S. economy afloat and lead the residential investment component of GDP growth by up to 10 percent this year.
If you are concerned that the world economy could hurt commercial real estate, the United States economy should actually be fine. It is forecast to grow 2 to 3 percent, which would generate around 2 million jobs.
How could you cash in on bustling commercial real estate activity? Invest in a property! Check out the commercial properties we have available at RE/MAX Paradise today, and contact one of our commercial practitioners when one catches your eye.