Experts Expect Market Recovery to Be Slow and Plodding

April 02, 2012 / Elizabeth Buckley, Commercial Property Analyst

U.S. commercial property deals have been estimated to be likely to rise 20 percent in 2012. Technology and energy will provide the impetus for this increase. The space required by these growing industries will compel them to purchase, lease or rent more office and manufacturing space. This will increase the square footage of commercial property that is required for them to conduct their business in.

Experts Expect Market Recovery to Be Slow and Plodding

One expert stated that leasing gains last year were broad-based. Lending for property deals was increased by lending institutions. Investors are easing out of the mindset of hesitancy that has slowed leasing for the past two years. The year 2012 will see activity in the real estate investment trusts, private-equity firms and life-insurance companies as sources of loans.

San Francisco’s office-leasing surge as well as the Silicon Valley’s is a result of the creation of new Internet companies and new products. Online business is big and getting bigger and needs an office as it grows. IT needs to expand as the Internet businesses expand.

The end result is more business resulting in more jobs, more jobs resulting in more income and  more income resulting in more people able to buy homes. The circle culminates in more people growing up in the security of happy homes growing up to go to college and preparing to create more industrial companies, which results in more businesses to create more jobs to…

And the circle continues – improving employment numbers, the real estate situation and the United States economy in general.

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