Issues Affecting Commercial Real Estate in 2016

Before making prudent commercial real estate decisions, it is paramount put into consideration, the social and business trends that may affect the investments in the sector. Here are several issues that are affecting real estate in 2016. First, there are major changes in the global economy characterized by an […]

Before making prudent commercial real estate decisions, it is paramount put into consideration, the social and business trends that may affect the investments in the sector. Here are several issues that are affecting real estate in 2016. First, there are major changes in the global economy characterized by an increase in the GDP. These changes will lead to global deceleration and potential for weaker exports. There are shifts in the demographics whereby millennials have surpassed the Boomers. These shifts will have an immense impact on real estate because of the lifestyles chosen by the millennials. There is an excess supply of capital out of the United States to buy real estate assets in the United States. This has led to an increase in investment rates driven by economies that have few safe assets, high saving rates, and a shortage of mature financial markets. Click here
The gap between the rich and poor is widening, an issue that requires greater scrutiny by the commercial real estate investors. This has both positive and negative impacts on the sector. It will lead to a rise in new opportunities to serve the new markets. On the negative side, it will lead to unemployment, which will, in turn, lead to a lack of investments and increase in social unrests as experienced in various cities and towns across the world. Read more
The rise in interest rates has hit historic lows, and it is anticipated that it will remain the same for a long time. High-interest rates will devalue real estate properties, which will cause higher mortgage payments and thus reducing the choices of the homebuyers. The Real Estate technology is dynamic, and it is positioning the commercial real estate sector for disruption. The technological innovations will increase opportunities for investors in the industry. Learn more.

 The political instabilities are affecting investment decisions in the real estate industry. The commercial real estate sector will have to consider these issues when making investment decisions in 2016. Visit site