Commercial Real Estate Market
While the residential real estate market’s bubble has burst, it does not seem to have spread to the commercial market. The outlook in the commercial real estate sector is cautious but upbeat.
Commercial property sales hit $401 billion last week, lead by strong markets in the office and retail segment, according to Real Capital Analytics. This outpaced last year’s total of $359 billion.
In Dallas, everything from downtown office buildings to suburban apartment projects has changed hands this year. Several other big sales are expected to close before the end of the year. North Texas office construction has hit a 7-year high. Last month, the Commerce Department announced that nationwide, construction spending on office buildings, shopping centers and other private, nonresidential projects jumped 15.2 percent in August.
There have been some signs of slowing growth but nothing like that experienced by the residential market. This is due partly to buyers of commercial real estate having other resources available to them to help to ride out changes in the lending market.
Because of strong job growth, most expect Texas to fare better in any recession that does come out of the residential melt down. Most economists are giving 50-50 odds on a slight recession occurring in the next 6 months.
If the broader economy stumbles, commercial real estate markets would be more affected.
For more information about the current commericial real estate market, contact Texas Legal Entities. They work hard to make sure that you are making the best decision for the success of you and your business.
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