Experienced Kansas City Construction Law Firm
Call Our Team Today
1-800-523-5786

Commercial real estate sales up

If Kansas follows the national trend, commercial real estate sales are set to be up in 2015. However, purchases of some income-generating properties also appear to be slowing down in the real estate market.

The year 2006 was the last time that there was a real soar in commercial real estate. However, the first half of 2015 realized an increase of 36 percent for properties that were sold above $2.5 million, slightly exceeding the pace in 2006. These figures are based on the sale of commercial real estate such as shopping malls, apartment complexes and office buildings above the $2.5 million threshold. Additionally, there was an increase in the average price of such properties sold, going from about $13.9 million in 2014 to $16.3 million in the first half of 2015. There have been increases in sales across many markets across the country, including Los Angeles, New York, Chicago, San Francisco, St. Louis, Orlando and Palm Beach.

However, real estate professionals say that the increase in commercial development and sales is different than the last boom in 2006. They cite examples of when investors would borrow more than the value of the property, hoping that the market would be greater than expenses. However, investors in 2015 commonly invest more of their own money than the money they rely on banks to give them. This is partly because investors and lenders are more cautious than they were a decade ago. Additionally, even though there has been a spurt of sales in 2015, the second quarter showed a significant decrease in sales compared to the first quarter of the year. Of the increases, industrial and suburban offices realized the greatest rate of growth.

Investors who are considering the purchase of commercial real estate may choose to discuss this prospect with a real estate lawyer. Legal counsel may be able to evaluate land use restrictions and potential agreements to determine if there is a good deal.

No Comments

Leave a comment
Comment Information

Our condo association was faced with monumental construction issues thanks to the original developer of our complex. We were cash poor and in no position to get legal representation without a contingency fee arrangement. Luckily for us, Scott Long and Burke Robinson were willing to take us on as clients. Their work ethic, professionalism and knowledge of condominium construction served our association very well. Any association would be well served in hiring these gentlemen to represent them.

Board of Directors - Plaza Gardens on the Lake Condominium Owners’ Association Lake of the Ozarks, MO

Read More Testimonials

Let Us Help You

Contact our Kansas City Construction Law Firm by calling 1-800-523-5786 or by completing this contact form.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy