Commercial Property shows great promise as far as increased values go. The industry in general is set to improve in 2012. A survey was conducted by The Urban Land Institute and the remaining part of the year is predicted to be busy.
Most promising of all commercial property is the apartment sector. With all the foreclosures in many areas, those families who are displaced must live somewhere. Warehouse distribution centers are second in line to improve because U.S. manufacturing is exhibiting positive signs of improvement.
Industrial properties in Austin, Texas and the Silicon Valley are high-tech market hubs and more jobs, more people looking to rent and higher rents are predicted. Hotels will gain as a result of corporate and individual travel.
The places where property values are increasing the most are San Francisco and Boston. Los Angeles will remain flat according to the experts. That is not as negative as the outlook in Washington, D.C. where market possibilities appear grim. There is a chance of federal cutbacks depleting the need for office space.
There is one major redevelopment project being planned for South Los Angeles. Kaiser Permanente is set to purchase a large portion of a site to construct a nonprofit health plan and hospital system’s addition. There will be two medical office buildings and the Kaiser physicians will see patients there.
Marlon Square is the site and it contains 22 acres. Public funds in the millions are allocated for the improvements. An apartment complex for seniors was finished in September.
Possible plans for a 120,000-square-foot retail complex are rumored. It would go up right across from Rave Cinemas and Baldwin Hills Plaza. Negotiations are now underway for purchase of the land.
But, only the next seven months will prove how the commercial property market will fluctuate in East Los Angeles and various urban areas around the country.