Real estate experts in Missouri and around the country have predicted for some time that rising interest rates and more conservative lending practices would make financing more difficult to come by for property developers and investors. Data released recently by the Mortgage Bankers Association suggests that these effects are now being felt. The trade group reports that mortgage closings in 2016 were down by 3 percent overall and 7 percent in the fourth quarter.
Data from leading research and brokerage firms suggests that commercial property developers in Missouri and around the country are finding it increasingly difficult to secure financing for their latest projects. Property sales figures in the first quarter of 2017 for the nation as a whole were down by 18 percent compared to a year ago according to Real Capital Analytics, but Cushman & Wakefield have reported that they plunged by an alarming 58 percent in New York City.
Real estate investors in Missouri and around the country are becoming increasingly interested in commercial properties like offices, stores warehouses and garages. Commercial landlords generally have more businesslike relationships with their tenants, and they rarely have to deal with minor issues or address petty grievances. Most business tenants have reliable sources of income, and they also tend to be more stable and predictable than residential renters.
Nationally, the commercial real estate lending market has begun to tighten as lenders begin to hit capital control restrictions. Other regulatory restrictions may further tighten the commercial real estate lending market. However, those looking to develop Colorado properties may find that there are plenty of opportunities to borrow money. This is because commercial real estate markets correlate highly to local economic conditions.
Missouri music fans may be interested to know that on May 1, 2017, an attendee of the Fyre Festival filed a $100 million class action lawsuit against the owners of the event. Each of the three defendants is being sued for breach of contract, fraud and misleading advertising.