California residents who are involved in the commercial real estate market likely know that August is normally the slowest month of the year for transactions. This year has been different, however, and brokers across the nation have reported brisk business thus far during the first part of the month.
Bisnow surveyed brokers from coast to coast about the commercial real estate markets in their respective areas. Almost unanimously, the brokers responded with reports that the summer so far has been very busy. In the San Francisco Bay Area, for example, brokers report that 2.4 million square feet of offices have been leased by companies during the last three months. By comparison, just 700,000 square feet of offices were rented during the first quarter of the year. Colliers International reports a similar story for New York commercial real estate. In July, sales were up by 10 percent year-over-year from 2016 and by 2.2 percent over the prior month.
Similar reports have been made by brokers across the country. Industry experts believe that several factors have contributed to the strong commercial real estate market. Brokers are able to use technology to continue working even while they are on vacation. Some companies who were waiting to see what the market would be like following the 2016 presidential election are now trying to make up for lost time and entering into new leases.
Commercial real estate investing may require market analyses and an understanding of when is the right time to pull the trigger. Real estate developers and others who are interested in these types of transactions might want to get legal advice from experienced business and commercial law attorneys who can review the proposed documents to see if there are any provisions that could prove to be problematic in the future.