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Commercial real estate markets hold steady

Missouri investors may wish to keep their money in U.S. commercial real estate. According to NAI Global, demand was healthy in the second quarter of 2017 and should continue to remain steady in the second half of the year. Lower vacancy rates and higher rental rates mean that investors may see steady returns over the long term.

In the industrial sector, rents increased by 1.7 percent in the first quarter and 1.6 percent in the second quarter. Vacancy rates were at 5.1 percent, which held steady near 20-year lows. The office sector also experienced lower vacancy rates and generally higher rents throughout the country. However, decreases in rents in the New York and Chicago markets resulted in the national average dropping slightly. Vacancy rates were at 9.6 percent for the third straight quarter, which is at a 10-year low.

In the retail sector, there was a 1.6 percent increase in rental rates in the second quarter of 2017. This was preceded by a 1.8 percent increase in the first quarter of 2017, and it marks the fifth straight year of increases in retail commercial rents. Construction, absorption and vacancy rates all held steady in the retail commercial sector. Overall, low volatility in the commercial sector as a whole should mean steady returns for investors in the near future.

Buying commercial property may be an ideal way to diversify an investment portfolio. It may also be ideal for those looking for tangible assets to pass down to future generations. However, it may be a good idea to discuss a commercial real estate transaction with an attorney or other advisers prior to closing. This may make it easier to find a property and a deal that meets a buyer's expectations.

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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

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