In 2017, the commercial real estate market in the United States will be influenced by several current trends that are expected to drive growth in many regions and slow down growth in some. If you plan on making a commercial real estate investment in the near future, it is helpful to review some of these trends to help you prepare for different scenarios.
A knowledgeable Fort Lauderdale commercial real estate attorney can also advise you on what you might expect for your particular situation and for the South Florida market. In 2016, unemployment has declined and oil prices remain low compared to 2015, while demand for housing, retail and office space has risen. This has driven commercial real estate growth in several metro areas including South Florida. Global economic uncertainty has added to this growth due to an influx of foreign capital.
The United States remains an attractive commercial real estate market for global investors, and it is expected that this trend will continue in 2017. Political events such as the Brexit vote and economic uncertainties in Latin American countries have driven investors to seek stable real estate investments in the U.S. Commercial real estate attorneys in Fort Lauderdale and many other cities have seen an influx in the number of clients from abroad seeking advice on property acquisition in the United States.
Changes in oil prices may drive commercial real estate growth
The 2015 drop in oil prices which continued into 2016 has resulted in major economic consequences for all sectors, including commercial real estate. Many regions like South Florida have seen a net positive effect. Consumers have more spending money due to lower gasoline prices, which boosts the retail and hospitality industries. Tourism to Florida is also expected to continue to rise due to lower travel costs.
Demographic trends will continue to drive rental housing demand
Millennials and baby boomers continue to drive strong demand for multifamily rental housing. There are large numbers of baby boomers that still have not financially recovered from the Great Recession, while large groups of millennials are seeking to establish their first presence in housing.
Qualifying for mortgage lending continues to be challenging for large numbers of people in both demographics, further driving up rental demand. As a result, multifamily commercial real estate development is expected to continue to grow.
It can be challenging to anticipate how these trends will affect the South Florida commercial real estate market and your specific situation. Getting advice from an experienced Fort Lauderdale commercial real estate attorney can be very beneficial as you prepare for your next investment.
To schedule a consultation regarding your next commercial real estate deal, contact Mark Schecter today at (954)-779-7009.