Commercial real estate investors in California may be happy to learn that the real estate market and the U.S. economy both seem to be on the way up. Rental housing and office properties have been in high demand, thanks to a positive trend in U.S. employment. Low oil prices have also led to an increase in consumer spending that has benefited commercial businesses that offer goods and services.
Investor's Business Daily says that information from the NCREIF Property Index indicates positive performance in the commercial real estate market. The commercial property market has grown for six years in a row following the global financial crisis of 2008. Another recent survey also indicated growth in the commercial real estate market.
While real estate cycles are known to be unpredictable, real estate analysts are still positive about the current cycle that the U.S. is in right now. However, analysts have warned that some of the positive trends in real estate may be influenced by rent increases, a decline in new construction, low vacancy rates and low interest rates.
Investing in commercial real estate in the right place and at the right time can be highly profitable. However, this type of investment requires a lot of capital, a lot of research and a huge time commitment. When an investor becomes involved in a dispute over a property they own, the dispute could turn into an expensive legal battle. Before deciding to purchase a commercial real estate property, an investor may want to talk to an attorney about potential lease disputes or other issues with the property that could cause problems later on.
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