Tampa Real Estate Predicts Uncertain Future for Commercial Property in 2010
Feb 3rd, 2010 by Kolleen
Many real estate insiders, including a St. Petersburg homes for sale real estate company, are cautiously optimistic about the commercial real estate outlook for 2010.
The residential housing market is showing signs of some recovery, in Florida, Nevada, Arizona and California. The existing housing market sales for 2008 saw a double-digit increase even though most of the country has been experiencing a recession amid rising foreclosures, stalled home sales and credit crunches.
The residential troubles oftentimes make the commercial properties look healthier in comparison and in part due to the bank’s reluctance to foreclose even as more businesses move out, creating more vacancies and property values begin to slide.
Another problem, according to a Tampa homes for sale representative is that companies are continuing to downsize, creating an even bigger commercial real estate problem in 2010.
Many people in the commercial real estate market are noticing that there is more supply than demand going on in the industry and the excess surplus has suppressed prices.
Rates for commercial property financing are probably at an all-time low and prices are cheaper than they were; however this is not filling up the empty commercial property in a lot of states, including Tampa real estate firm’s listings.
According to one survey, the average renting price for offices in the third quarter fell to $27.67 from $28.17, that’s a drop of 3.4 percent from a year ago and well below $28 which was the price in 2006.
Retail real estate is more discretionary according to one real estate firm. Consumers are decreasing their discretionary spending which affects everyone in all areas of business, including commercial real estate.
This does not mean that all commercial sectors will be experiencing tough times. In the next 12-18 months, many individuals and companies will be looking for buildings that are energy efficient, provide good tax incentives and provide the maximum return on their dollars. Buyers will also have the opportunity to snag commercial real estate property at ‘rock bottom’ low prices from companies who are facing foreclosure and/or bankruptcy.
