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Are commercial real estate prices in the U.S. about to plummet?

On Behalf of | Jun 22, 2016 | Commercial Real Estate

There are a wide range of things that can have big impacts on individuals who are looking to buy or sell commercial real estate. One is what ultimately happens in the negotiations and commercial real estate transactions they end up being involved in. This includes how legal matters that came up in connection to such negotiations/transactions were handled. Ignoring or mishandling commercial-real-estate-sale/purchase-related legal matters could create significant problems for a buyer or seller and put them in a disadvantageous position.

Thus, when a person is looking into engaging in a commercial real estate transaction, whether as a seller or a buyer, they may find it worthwhile to have a skilled attorney advise and guide them on legal issues related to the transaction.

Another thing that can significantly impact commercial real estate buyers and sellers are trends in the commercial real estate market.

Some are predicting that the U.S. commercial real estate market will be seeing a trend of plummeting prices over the next year. For example, a recent report concluded that, over the next 12 months, this market may see an overall drop in prices as big as 5 percent. A variety of current factors, including regulations and turmoil in the commercial mortgage-backed securities market, are being pointed to as things that could lead to price declines when it comes to commercial real estate in America.

Now, there being an overall trend in the U.S. commercial real estate market does not mean that all parts of the country will experience that same trend. This is because each local market can have its own unique factors at play. Given this, one wonders, if the U.S. does see an overall trend of falling commercial real estate prices over the next year, how in-line or away from this trend the commercial real estate market here in the San Antonio area will be and thus what level of impact the trend would have for San Antonio-area buyers and sellers.

Source: The Boston Globe, “Pimco says ‘storm is brewing’ in US commercial real estate,” John Gittelsohn and Sarah Mulholland, June 21, 2016