Categorized | Commercial

Commercial Real Estate Prices On The Rise

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The commercial property market in the United States continues to avoid the steady decline that has plagued the residential real estate market. In the most recent monthly report, commercial real estate prices are shown to have risen nearly one percent over what they were the month prior.

The important factor behind this good news is that much of the gains were not from the typical prime commercial real estate in major cities, but rather from commercial properties in smaller cities. Investors have once again set their eyes and wallets on properties in the nation’s smaller cities in hopes of gaining much higher returns on their investment. Such properties are usually less expensive, thus providing for more profitable opportunities.

Some experts say that they had hoped for greater growth, and that it didn’t happen due to the volatility seen in the stock market. It is believed that strong growth in property prices will not be seen for some time, or at least until the United States economy is back on track. It is believed that the numbers related to sales and price increases will likely even out, or even decrease in the coming months as a result of the most recent job and economic reports.

Commercial property prices and sales still have not reached their peak values, which took place in 2007. That is understandable, though, as many investors have been acting with caution in nearly every market. Commercial property still appears to have a leg up on residential properties, most likely due to its greater stability related to potential returns.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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