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Economists predict positive outlook for commercial real estate

Florida residents with an interest in commercial real estate issues may wish to know the results of a report on the industry's next few years. The experts interviewed are predicting growth that should have a positive impact for those involved in commercial property.

The Urban Land Institute's Center for Capital Markets and Real Estate conducted a survey of 46 economists in the commercial property industry. They released the results of this survey on April 8, forecasting growth in commercial real estate over the next three years. For example, in 2015 the industry is believed to be growing to $470 billion, which is up from $424 billion in 2014. This represents an 11 percent rise, and the economists predict the trend will continue with another six percent over the following two years.

This growth is attributed to a few different factors, including improved rates of occupancy and vacancy and a strong labor market. A strong labor market could then lead to an increase in demand for office space. The forecast predicts that all of these will lead to rent increases in various sectors of the commercial real estate industry. The economists believe that the revenue from warehouses and hotel rooms will see the biggest increases. Other positive trends foreseen in the forecast include competitive real estate lending rates holding steady and prices of commercial real estate rising by a rate 2.3 percent higher than the long-term average over the next three years.

Those seeking to expand their commercial real estate holdings may benefit from the assistance of an attorney. The attorney may be able to represent their client in the acquisition of commercial property. The attorney may also be helpful in handling any real estate disputes that come up.

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