Commercial real estate investment is expected to increase in 2016. In a prior post, we highlighted Congress’ latest move to relax tax burdens on foreign investors who purchase property in U.S. markets. The move is partly based on the notion of encouraging foreign investment so that more than just commercial real estate prices will drive international money into our economy.
According to Forbes that while the stock market is beginning (once again) to show the volatility that gives many investors pause, the real estate market has maintained a steadiness that has analysts predicting that 2016 will be another good year. According to a recent Forbes.com report, investors are flocking to six major cities across the globe for deals.
They include Paris, Sydney, London, New York, Los Angeles, San Francisco and Frankfurt. Analysts report that more investors will be putting more money into real estate projects compared to other investments, such as stocks and bonds. As we alluded to earlier, the relative stability is a primary driver. The first nine months of 2015 saw $625 billion in direct property investment; a double digit increase from the same period in 2014. The current economic conditions do not suggest that there will be much of a decline (if any) for the same period in 2016.
Given the tenor of the real estate market, investors and property owners alike have a vested interest in avoiding costly legal problems. The advice and counsel of an experienced real estate attorney can help in achieving an investor’s goals. If you have questions about commercial real estate financing, research and due diligence, or green building development options, the attorneys at The Loftin Firm can advise you.