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Office space prices may have late recovery

On Behalf of | Jun 14, 2016 | Uncategorized

Many people who invested in commercial property in Missouri during the recession are now watching the prices go up. Almost every property type has now surpassed the price levels that it was at before 2008. With so many property types hitting high price levels, investors may not see a lot of opportunities to buy.

According to the CEO of Marcus & Millichap, there is still a chance to profit off of the recession and the recovery. One property type that has been slow to recover to its pre-recession price levels is office property, but these are expected to increase in price soon. The Marcus & Millichap CEO said that commercial real estate investors still have opportunities to make money in the office property sector.

Office property prices were late to recover due to problems with overbuilding and excess office space. Though there has been job growth, the job growth has not yet turned into demand for more office space or higher rent prices. However, continued job growth and a slow-down in building may soon lead to higher office space prices. This year, the sectors that occupy office space are expected to create 600,000 more jobs.

A commercial real estate investor may want to speak to an attorney about investing in office space. An attorney may be able to help an investor to determine if a particular building is zoned for commercial office space. If zoning is an issue, an attorney may help an investor to petition for zone variances so that they can go forward with a project.