Categorized | Commercial

Commercial Real Estate Market Outpacing Stock Market in United States

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With all the recent volatility in the United States stock market, investors are slowly looking for other avenues that will provide for better performance. One of those avenues is that of the commercial real estate market.

There are a wide variety of reasons as to why investors are looking closer at commercial real estate, but it mostly comes down to the fact that commercial real estate continues to be a preferred asset class, and serves as a less risky investment. Analysts believe that the commercial real estate market may still face a decline in performance, but it will not nearly be as bad as some are predicting for the stock market.

One factor that is working in the favor of the commercial real estate market is the incredibly low lending rates that make loans very attractive to potential buyers of commercial properties.

The news isn’t entirely positive, though, for the commercial real estate market. Experts believe that occupancy and rental numbers may fall in the coming quarter, and that there will be less sales. It is believed that many buyers and sellers may wait out the troubled state of the economy and markets in order to get a better idea as to how everything will play out in the long run.

The only sector that will see the least amount of struggle is that of multi-family properties. Sales of multi-family homes and housing units should not see the decline that other sectors will see, as they are considerably less risky than any of the other alternatives.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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