Commercial real estate values around the country have more than doubled since the nadir of the 2008 and 2009 financial crisis. However, prices have begun to level off, and a growing number of experts are predicting that the market will soon become far more volatile. They say that demand will likely fall as economic growth in Missouri and other states begins to slow down, and they warn that the consequences of this falling demand will be felt in 2017 and 2018 when dozens of large construction projects are scheduled to be completed.
Small business owners and developers in Missouri cannot always find the perfect properties for their planned projects. While a property may be well located and priced right, it may not be zoned for the specific commercial purpose a company wants to use it for. Commercial zoning laws can sometimes interfere with such plans, but they can often be changed.
Both small business and commercial real estate owners often rely on commercial real estate lending in order to purchase properties. A large number of properties have commercial mortgage loans that are set to mature in 2017. This could soon lead to a number of owners scrambling to secure financing in order to refinance their loans.
Missouri entrepreneurs who are starting their first ventures may be unaware that negotiating the terms of commercial leases is a normal practice. Unlike residential rental agreements, commercial leases are normally not standard. When the local market is not hot, it is possible for business owners to negotiate many different parts of their leases to make them more favorable to them.