Positive Outlook for Commercial Real Estate?

If you have been reading along for a while, you know that I think a lot about the economy and taxes.   Commercial Real Estate activity is obviously dependent on how well the economy is doing.   The last few years, we have had several fits and starts where it appeared that the economy was trying to improve.   And while I have analyzed inflation, taxes, international trade, consumer confidence, and other economic indicators, the fact is that one of the best predicters of real estate activity is unemployment.   

It's really obvious when you think about it.  When people have jobs, they can afford to buy a house, goods or services.   If they do not have jobs, they have to cut back on purchases and maybe have to sell a house.   Likewise for businesses, if they are hiring more people, they will at some point need more space for them to work, whether in a warehouse or an office.    If on the other hand they have to lay people off, they need less space.   

The last couple of months, we have been getting good reports on the jobs front.   While there are many pundits telling us that the improvement is not nearly good enough, the fact is that unemployment has decreased.  Certainly, I would like it to decrease faster but as long as it is decreasing, we can expect there to be an improvement in the commercial AND residential real estate markets.

So, keep your fingers crosssed for continued improvement in 2012 and have a great day.  

Thanks for reading.

Notes, Disclaimers, and such -

I am sure that my managing broker would appreciate me clarifying that the views expressed here are my own and do not necessarily represent the opinions of Commonwealth Commercial Real Estate, it's brokers, agents, and employees (other than me, of course.)   If you have a comment or another opinion, you are welcome to make a comment.   However, you are not welcome to make inappropriate, inconsiderate or hateful comments.   Should I see any such comments, I will exercise my right to delete them.

BTW - If you know someone in need of help with real estate, give me a call.  I specialize in commercial real estate and I work with Buyers, Sellers, Landlords, Tenants and Investors.  I handle Office, Industrial, Land, Investment and Retail properties. Heck, I can even set you up with someone to help with residential property.

David

David W. McCoy
Associate Broker
Commonwealth Commercial Real Estate
10444 Bluegrass Pkwy
Louisville, KY  40299

ofc:  (502) 379-6005
cel:   (502) 905-5274

DMcCoy@ccre.biz
www.ccre.biz