Commercial property sales have continued to show signs of economic strength this year, according to the Federal Reserve. The Fed issued a report on June 4 regarding the current state of the United States economy in various districts across the nation. Hopefully, some of the favorable commercial property activity referenced in the report will be seen in Michigan as well.
According to its analysis, the Federal Reserve Bank of New York says that demand has been increasing for commercial real estate property – including new construction and sales of existing construction — in Atlanta, for example. More demand for office space and leased buildings in Chicago has also increased commercial property activity, especially with regard to grocery stores. Downtown commercial projects have been on the rise in St. Louis and Louisville as well, says the Fed. In Dallas, office leasing is robust and in Houston occupancy levels remain high.
In Boston, certain investors have argued that the city’s commercial real estate prices are too high. Nevertheless, investor interest continues to soar in Boston. Still, sources in Boston indicate that predictions with regard to how the sector will perform in the coming months remains difficult to predict and will largely depend on how well the economy grows locally and nationally.
There is no way to know for sure how well commercial property markets will perform in Michigan; however, regardless of whether the market is a bear or a bull, nothing can substitute sound legal planning during a commercial property transaction. By taking the time to review all the necessary documentation with a real estate professional and/or attorney before signing, individuals and businesses can save a lot of legal troubles, time, headache and a great deal of money in the long run.
Source: CreditUnionTimes, “Commercial Real Estate Steady: Fed” Michelle A. Samaad, Jun. 09, 2014