The professionals expect values to climb for commercial property. There are many indications such as an increase in corporate profits and the need for land and leases to keep up with increased business. Commercial properties have been faring better all over and the second half of 2012 should see vast increases. This comes from a survey taken using architects, brokers and other real estate pros.
In first place for increased activity is the apartment segment. Due to fewer mortgage applications being approved and fewer people having jobs, rentals are the wave of the near future. More warehouse space will be needed to keep up with industrial growth, putting industrial property in second place. Industrial properties in Austin, Texas and the Silicon Valley are where much industrial activity is taking place. These two hubs of growth will outpace the rest of the country.
Hotels were in third place; probably due to corporate travel increasing. Property values are growing fastest in San Francisco and Boston. In Los Angeles things don’t seem destined to change much in the near future. Washington D.C. has seen a decline in prospective investments and a decline in investment prospects. Hotels keep pace with business travelers and the tourist industry. It had the third largest predicted growth in the annual survey as corporate and individual travel grew.
Boston and San Francisco are expected to be among the leaders of rising property values, while Los Angeles values are predicted to generally remain flat. Washington, D.C., showed the biggest decline in market investment prospects because of already elevated prices. The suspicion that the federal government might activate cutbacks that would affect the market did not make property there more attractive as an investment opportunity.