Among those involved in California commercial real estate, some are concerned that the market is on the verge of declining. While most sectors of commercial real estate have regained their values that existed prior to the recession, the office space sector has not.
The CEO of Marcus & Millichap, the largest commercial real estate brokerage firm in the country, believes that this demonstrates that particular sector has room to grow. According to him, the growth potential for office space means that investors could reap profits if the prices do go up.
He believes the office space sector had a large amount of excess space leased as the market emerged from the recession. This meant that the market’s recovery did not initially result in an increased demand, making the sector slower to recover. In the firm’s view, demand has started increasing, leading rent prices to irise and signalling a recovery for office spaces. Analysts expect the professional and business services industry sector to add around 600,000 jobs this year. This sector drives the leasing rates for commercial office space, so a corollary increase in rent prices is expected to also occur.
Commercial real estate can be an attractive investment option. When investors are considering involvement in the commercial real estate market, they may want to get advice from attorneys who have experience in this area. Attorneys may be current on the various factors interplaying in the commercial real estate market and thus better able to advise their clients regarding the advisability of engaging in new development projects. When a client has decided to purchase a property or initiate a new development, a lawyer may help research the various regulations and zoning laws that may apply.