Categorized | Finance and Mortgage

Global Commercial Market Defies Economic Woes

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Although economic uncertainty is taking its toll across the globe, the commercial real estate market worldwide continues to show steady improvements. Office vacancies have fallen to their lowest point in two years, and prime office rents have increased for eight straight quarters.

There are some markets that are undoubtedly struggling due to the dire economic circumstances in those nations, though the majority of the commercial markets are holding steady, thus defying the current economic difficulties being faced.

Rental markets in both North and South America, as well as in Europe, posted increases during the fourth quarter. The improvement in the numbers suggests that commercial real estate remains the preferred investment option for many investors. It seems that commercial real estate is particularly resilient against factors that are decimating other investment areas.

The prime markets continue to perform the best in the tough economic times, as they typically demonstrate the strongest economic fundamentals. As such, they are considered to be the safest kind of investment during periods of economic despair.

Analysts believe that the commercial real estate markets around the world will continue to post improvements through 2012. With the market in the United States starting to improve across the board, the potential for growth is greater than it has been in years. As such, investors are looking to commercial real estate even more to build upon their bottom line. Prime office space will likely remain a hot commodity for investors, as it is the safest investment, and continues to yield the best returns of all the commercial real estate sectors.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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