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Commercial real estate trends to watch in 2018

On Behalf of | Nov 13, 2017 | Commercial Real Estate

Prospective buyers, sellers and investors who are interested in the commercial real estate market in Missouri should take care to understand the market trends before they move forward. This might help them to realize the most benefit from their commercial real estate transactions in 2018.

Experts state that people should avoid believing in the hype that is currently being pushed by politicians. For example, it is unlikely that tax cuts will lead to a long-term economic boost because of the corresponding drag on the economy that would be caused by ballooning deficits. Instead, economists state that increased productivity and job opportunities have greater impacts on the economy and on growth. Economists also caution businesses from moving to the center of cities. While there has been a push to revive city centers, many of the businesses that are moving back are very large corporations that likely should have remained there in the 1970s and 1980s. Better deals may be found in the suburbs for many businesses.

Overall, the commercial real estate market is expected to be positive in 2018. Some observers believe that sellers and buyers might have difficulty reaching agreements, however. Sellers may try to demand higher unit prices because of the strength of the economy while buyers may point to rising interest rates as a reason that they might be unwilling to pay those prices.

Commercial developers might benefit by retaining experienced commercial law attorneys who might help their clients to understand the market trends so that they plan commercial developments that are likelier to be successful. The lawyers might also assist their clients with potential legal issues, including with obtaining zoning permits and easements that might be required.