Commercial Real Estate Remains Strong


Driven by fundamentals rather than emotion, the commercial real estate market hasn’t enjoyed the fantastic hyper-growth of the residential real estate in the past few years. Neither has it suffered though the hangover effects of the wild party it missed. It fared well, slow and steady, thanks to solid fundamentals and investor discipline.

Commercial real estate hasn’t had to deal with subprime mortgages, home loan, adjustable rate mortgages, and interest only mortgages. Also, the commercial market hasn’t had the concerns regarding unrestrained mortgage lending by mortgage lenders and mortgage brokers.

As a result, the commercial sector has been able escape the residual effects of the housing market excesses that led to the bubble burst in the housing boom. Quite the contrary, commercial real estate did well in 2007 and is quite upbeat about future prospects.

For Florida in 2008, the prospect of lower interest rates (read: cheap money), increased foreign investment as a result of the weaker dollar, stabilizing rents, and, best of all, lower property taxes should ensure higher values and smooth sailing for commercial property investors. Learn more about the Commercial Real Estate Outlook and other issues affecting real estate investment in Florida in the Florida Real Estate Blog. The consultants at Karlhaus Realty are uniquely qualified to help you navigate the world of Commercial real estate investment in Florida

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