Categorized | Commercial

United States Commercial Real Estate Market Looks to 2012

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Both the residential and commercial real estate markets in the United States have had difficult years in 2011. According to some analysts and the most recent reports, that is expected to change in 2012 for the commercial real estate market. In their analysis of the most recent commercial real estate trends, many analysts believe that the commercial real estate market in the United States will experience some gains in the next year.

It is believed that the economic situation in the United States will improve in 2012, promoting job and overall economic growth. As a result, the commercial real estate market will reap the benefits. In general, the commercial real estate market’s performance is determined by the success of the overall economy.

Analysts believe that vacancy rates will drop, causing rents to go up in the next year. One of the strongest gains will be experienced in the multifamily market, as the limited number of current properties and the strong current demand will lead to rent increases by as much as seven percent.

While the overall commercial real estate market is expected to grow and improve, it is unlikely that new construction will begin in the next year. Construction companies will likely continue to see limited activity, as current prices in the property market are currently below building costs.

The growth in the commercial real estate market will be seen across the nation, with prime cities expected to lead the way. While the multifamily market will lead the way, other markets such as retail, industrial, and office properties will also experience solid growth.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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