Though economic conditions have remained turbulent in recent months, several sectors have enjoyed significant improvements this fall. The commercial real estate sector, which many experts believed would collapse following the housing crisis but never did, is now showing more marked signs of life across the nation. Two recent reports revealed that commercial real estate experienced gradual gains thus far this year, with expectations leaning toward continued growth in the coming years. Though many experts are not entirely enthusiastic about a major return to pre-recession levels in the coming months. PricewaterhouseCoopers releases survey results PricewaterhouseCooper (PwC) recently released its Emerging Trends in Real Estate Forecast, which projects San Francisco to be the highest ranking … [Read more...]

Small business commercial real estate lending has been a large point of contention in recent months, as national and international reports consistently contradict one another. However, local areas and certain types of commercial real estate have either bounced back in recent months, or remained steady in the years following the Great Recession. Small business owners who are interested in purchasing commercial real estate will find the current climate extremely advantageous, as the recession dropped rates to record lows, and vacancies abound. After finding adequate commercial real estate loans, entrepreneurs have a lot of options for commercial space. Turbulence in Colorado The Gazette recently reported that the commercial real estate fallout after the recession in Colorado Springs has … [Read more...]

In recent months, several reports have indicated that commercial real estate occupancy rates in many locales have improved at an unexpectedly rapid pace. This also rang true for commercial real estate on the national level, though a new report has revealed that the sector's recovery slowed in the second quarter of this year, likely the result of tightened small business loan availability. The National Association of Realtors recently released its quarterly commercial real estate forecast. According to NAR, much of the decreased pace can be attributed to the credit crunch businesses faced in the first two quarters of the year, as well as a slight slowdown in job creation. "Job creation in the second quarter was about half of what we saw in the first quarter, which is moderating … [Read more...]

Commercial real estate is one of the better indicators of economic health in a given area, especially since the real estate crisis following the recession. Luckily, several commercial real estate markets have improved in locales around the nation, while reports last month showed increases in new commercial real estate loan disbursement volumes. In July, the Mortgage Bankers Association reported that commercial loan originations grew about 25 percent year-over-year in the second quarter of 2012. Further, the data found a 56 percent increase in such volumes for the retail sector - 15 percent for office space and 22 percent in the hotel industry. Three separate reports last week revealed that several states and cities are experiencing very strong growth in commercial real estate purchases. … [Read more...]

In recent months, many regions have reported significant improvements to commercial real estate prices and occupancies. Many experts have viewed the current market to be extremely ripe for the taking, as costs fell 30 percent nationally, following the most recent recession, and are only now beginning to show improvement. Locking in leases and purchasing new office space will ensure low rates and higher returns on investment as the sector continues to improve. One recent report found that commercial real estate managers believe that there will be a significant improvement to occupancy rates in the coming years. CorNet Global, a corporate real estate association, recently released its Corporate Real Estate 2020 survey, which projected substantial improvements in the U.S. manufacturing sector … [Read more...]

Small businesses have been leading the charge in economic expansion throughout recent months. To foster continued growth in employment and gross domestic product, the federal government and many financial institutions have been increasing lending volumes, helping businesses expand and improve operations. The latest edition of the Federal Reserve's Beige Book was released this week, and revealed a continued upward trend in economic activity. The Beige Book, also known as the Summary of Commentary on Current Economic Conditions, is compiled and distributed eight times a year, and data is pulled from 12 districts throughout the nation. The report supported several other recent studies that showed marked improvement in commercial real estate lending and acquisitions, as prices continue to … [Read more...]

After years of extremely dire conditions in the commercial real estate market, new reports suggest major improvements in the sector. Many of the increases in the commercial lending market have likely been the result of record-low real estate prices since the most recent recession, which led to a nationwide drop of 30 percent in valuations. In recent years, the Small Business Administration's 504 loan program has been especially active, fueling the commercial real estate lending sector. These loans can be used to purchase buildings, land and long-term equipment, as well as to construct, renovate or upgrade facilities and proceed with other real-estate based ventures. Notably, as a result of the Small Business Jobs Act, the loan can be used to refinance existing commercial mortgages, … [Read more...]

Government officials and financial institutions have increased efforts to support small business success and growth in recent months, as smaller firms are disproportionately responsible for private GDP and hiring. This support includes everything from tangible small business loans to added advisory programs for new entrepreneurs. As the Small Business Administration notes, 99.7 percent of all employer firms are small businesses and more than 44 percent of total payroll is distributed by SMBs, making this sector imperative to a full economic recovery. While these support efforts have succeeded in some respects, the latest SBA Quarterly Lending Bulletin revealed a 1.3 percent decrease in total outstanding loan valuations during the first quarter of 2012, citing data from the Federal Deposit … [Read more...]

The commercial real estate market has shown steady signs of improvement in recent months, as the regions hardest hit by the recent financial crisis are finding ways to decrease vacancies. As a result, commercial real estate loans will likely experience a similar bounce-back in the coming months. Allen Matkins and UCLA Anderson recently announced the joint California Commercial Real Estate Survey, which revealed increased optimism in the market. "Since the end of the recession we have seen developer optimism spread to all markets and types of commercial space along with an increased willingness to go forward with new development," UCLA Anderson Forecast Senior Economist Jerry Nickelsburg explained. The two organizations noted that high optimism in the commercial office space … [Read more...]

The commercial real estate sector was among the hardest hit by the recent recession, though many regions have managed to keep lease rates low and occupancy high. When looking to obtain a commercial real estate loan, always consider the location you will be inhabiting, as rates often depend on the locale's standing in the commercial real estate market. CNBC recently reported on the top states to do business in, with a specific focus on commercial real estate options. To give an idea of how badly the recession hit the sector, the news provider notes that though office values have increased 11 percent since 2011, they are still 30 percent behind pre-recession figures. Generally, the regions hit hardest by the recession yield the lowest rent rates for offices and warehouses, such as those … [Read more...]