U.S. commercial property is taking what has been termed a plodding upturn. Expectations are for a rise of twenty percent in 2012. That is an improvement. Plus, leases in all types of commercial space gained last year in all areas. The lending for purchases of commercial properties including apartments, offices, malls and warehouses may reach $216 billion, up from $180 billion last year and $115 billion in 2010.
Nationwide rents are expected to rise. Jobs are expected to increase, especially in San Francisco, the Silicon Valley and Houston and Dallas in Texas.
There is a surge in office space rentals in Silicon Valley and San Francisco. Start-up companies leased to new Internet firms and the amount of office space leased was increased by 2.7 million square feet, which makes it the largest increase in space increase that occurred since 2000 as reported by a broker in San Jose, California.
It is common knowledge that as the job market continues to improve, so will the real estate picture in both commercial property leases and sales and home sales. The residential housing market in the US as well as the US commercial property market will improve as soon as businesses hire more people. When people have jobs they have the money to buy homes. It is a natural progression and the economy will take time to recover completely.