When will the struggle end for Commercial Real Estate?

Posted: Jun 30, 2009 | Comments: 0 | Views: 9 | Bookmark and Share

Many of us homeowners are familiar with the downturn of the real estate market and the negative impact it has had on our homes and lives. As many families suffer through the fear and uncertainty associated with foreclosures, there is another unfortunate reality becoming apparent in the real estate market. <a title="Learn More About Commercial Real Estate so You Can Find the Amount of Space Best for your Business at Royal Commercial" rel="nofollow" onclick="javascript:pageTracker._trackPageview('/outgoing/article_exit_link');" href=http://www.royalcommercialcorp.com/resources/corporate-real-estate.php>Commercial real estate</a> is suffering as are those employed as a <a title="Learn More About Commercial Real Estate Agents so You Can Determine what You Need and How Much it Costs at Royal Commercial" rel="nofollow" onclick="javascript:pageTracker._trackPageview('/outgoing/article_exit_link');" href=http://www.royalcommercialcorp.com/resources/commercial-real-estate-agent.php>Commercial real estate agent</a>. As tenants struggle to even find ways to pay their rent so they can stay in their offices, the market begins to struggle as the rent goes down and values for buildings go down as a result. It is a very difficult cycle to break.

While we may feel the positive impacts of an economy turning around soon and home foreclosures are showing signs of leveling off, this is not true for the commercial economy. While many thought that because commercial leases are so long term this would help protect this industry that does not appear to be helping them as much as forecasted. Because of the fact that most landlords feared trying to find new tenants, they listened to tenant demands to lower the rent. This dramatic downturn means that in many areas the value of buildings have gone down significantly.
This dramatic and unfortunate downturn in the commercial real estate market will not be cured overnight. Investors and bank that heavily finance this market might be facing some heavy losses before the upswing occurs. It is a reality that many of the mortgaged properties in both commercial real estate and in the housing market are worth less than the current mortgages on the properties. In the commercial real estate market this will be a more difficult reality to overcome.

The government may step in to provide a package that will help investors; banks and the commercial real estate market survive. There are often things that the government can do to help things along. However, it won’t happen quickly and it won’t happen overnight. The upturn to this market may take many years to recover – some estimates put it at 2017. That is a lot of years that commercial real estate agents and properties face of some trying times. It’s an unfortunate cycle that we find ourselves in with businesses struggling due to lower spending on the part of most consumers and then high unemployment making it hard for people to spend that money to begin with. Will it ever end?

I often wonder if there will be a day when we don’t hear or read negative news regarding the economy. You have to wonder if we heard a little more positive feedback if that would help things turn around. Yes, my house may be worth less today than it was a year ago but things will turn around. The economy is going to get better, people will get jobs again and the real estate market will be strong once more. Let’s all take a good look at the positive aspects that still exist, we may find ourselves not worrying so much about the doom and gloom of the current day but looking forward to a brighter tomorrow.

(ArticlesBase SC #1003942)

Rate this Article
  • 1
  • 2
  • 3
  • 4
  • 5
  • 0 vote(s)
    Feedback
    RSS
    Print
    Email
    Re-Publish

    Source:  http://www.articlesbase.com/real-estate-articles/when-will-the-struggle-end-for-commercial-real-estate-1003942.html

    Article Tags:

    real estate agent

    ,

    commercial real estate

    Real Estate Marketing Tips - Part 1

    Learn how to: 60 Days to Your First Bargain Property - William Bronchick describes some aggressive marketing techniques that you can use to have motivated sellers with the creative terms you want find you. A.D. Kessler's Real Estate Roundtable #297 Clip 1 from Creative Real Estate Magazine at www.cremag.com (01:41)

    Learn about Selecting a Real Estate Agent

    Learn about selecting a real estate agent in this video from experienced realtors and mortgage brokers. (02:11)

    Real Estate Marketing Tips - Part 3

    Learn how to: 60 Days to Your First Bargain Property - William Bronchick describes some aggressive marketing techniques that you can use to have motivated sellers with the creative terms you want find you.Real Estate Marketing Tips - Part 3 (01:50)

    Real Estate Marketing Tips - Part 2

    Learn how to: 60 Days to Your First Bargain Property - William Bronchick describes some aggressive marketing techniques that you can use to have motivated sellers with the creative terms you want find you. (01:46)

    How To Invest In Real Estate

    Free expert real estate tips in how to invest in real estate property. Purchasing real estate with no money down using real estate sales tips. Use this great opportunity to expand your real estate investing profits. (02:29)

    Many people who invest actively in real estate prefer to take advantage of commercial real estate coaching. A commercial real estate coach can help you realize your goals and make money faster.

    By: Kilian l Business l Jun 29, 2009 l Views: 49

    If you are just starting out as a real estate agent, it can be difficult to get started selling commercial real estate. However, commercial real estate is the big money maker in the real estate business. Since commercial real estate has become quite popular since it is such a money...

    By: Tony Seruga, Yolanda Seruga And Yolanda Bishop l Business l Mar 05, 2007 l Views: 46

    If you are considering going in real estate make sure you know all your choices. Commercial or residential real estate – look into the differences and benefits of each.

    By: Rebecca Beckett l Business l Apr 20, 2009 l Views: 48

    The commercial real estate business is definitely picking up, and now may be a good time to invest. In past few years, prices of commercial real estate properties rose exponentially – 26 percent for apartment complexes, 21 percent for industrial properties, 14 percent for retail properties and six percent for office buildings. The first step to buying commercial real estate property is knowing what you are buying.

    By: Roberto Luongo l Finance > Real Estate l Jan 05, 2009 l Views: 11

    Thank you for visiting www.EquityWork.com: America's Premier Commercial Real Estate Search Portal. Www.EquityWork.com was founded by VisionEquity Media and Technology Partners, a division of AE Holdings Corporation. We are determined to build a premier commercial real estate search portal for brokers and agents. The website EquityWork.com is tailored to the needs of commercial real estate agents and brokers. We are determined to become the best in the industry to provide commercial real

    By: David. E. Harris l Computers l Jan 04, 2007 l Views: 205

    commercial real estate united realty Group offer selling services for rent, buying, selling and lease commercial real estate, legal accompanies transactions.

    By: Pro Bargain Hunter l Finance > Real Estate l Nov 19, 2008 l Views: 8

    PBH - Online business Traders is a Commercial Real Estate agent for small business. Search your Financial, Industrial, Software, Insurance, Security System, Healthcare, Internet, Telecom services etc...

    By: Pro Bargain Hunter l Finance > Real Estate l Nov 19, 2008 l Views: 14

    Confused on Which Entity to use to Protect Your Assets? Discover the simple Entity that protects you properly and eliminates fear on the deals. Read the full article...

    By: Tariq Ghazi l Finance > Real Estate l Feb 09, 2010 l Views: 1
    Gary Ashton

    With unemployment still at high levels across much of the country as well, there are fewer people who can afford to buy into this suppressed market at this time to take advantage of the excess housing supplies and low prices even with the reasonable interest rates and tax credits that are still available.

    By: Gary Ashton l Finance > Real Estate l Feb 09, 2010 l Views: 5

    The NC Outer Banks real estate market has developed into a targeted niche market for some, and a trap for others. Foreclosures and short sales have become the meal of choice for many Outer Banks realty investors looking to snag a good deal in a down market.

    By: jasonausie l Finance > Real Estate l Feb 09, 2010

    If you examine the point of view it is inevitable that HVCC will lowball all appraisalss.

    By: James A Johnson l Finance > Real Estate l Feb 09, 2010
    Jeff D

    The United States government is widening its grant programs to provide relief to its struggling people. Every year the government allocates $ 1 trillion to help the financially unstable. It has encouraged various grant programs with diverse purposes. One such grant is the housing grant.

    By: Jeff D l Finance > Real Estate l Feb 09, 2010 l Views: 2
    Tommy  Pennington

    Another great thing that the internet can be used for when you’re researching homes is to see what the area is like and what that home you’re interested in buying actually looks like from the street. If you’re interested in a particular area, you can use Google maps to look at the area and use the street view to see what that home actually looks like from the street.

    By: Tommy Pennington l Finance > Real Estate l Feb 09, 2010
    Jeff D

    If you think that your home needs renovation or you need money to buy a new home, you can apply for the free government grants. There are various types of government grants programmes such as grants for people willing to remodel the house or purchase a new one.

    By: Jeff D l Finance > Real Estate l Feb 09, 2010 l Views: 2

    Real estate investing is a profitable venture if you know the ins and outs of the business. If you are a real estate investor, there are different methods to generate profit in the real estate business. The different types of real estate investments offer different opportunities and you can choose...

    By: John Carlstrom l Finance > Real Estate l Feb 09, 2010 l Views: 4

    The rate at which you can pull up forms and other documentation heavily relies on the software you’re using to pull it up.

    By: 10x Marketing l Computers > Software l Jan 28, 2010

    There are a lot of fears that surface when becoming an online merchant. Learn what it takes to become successful!

    By: 10x Marketing l Internet > ECommerce l Jan 28, 2010 l Views: 4

    In the economy it’s most important to adapt to the future of online commerce in mobility and ease of use.

    By: 10x Marketing l Technology > Cell Phones l Jan 28, 2010 l Views: 3

    The first step to acquiring more customers for your business is to think like the customer and interpret what will draw them to your business.

    By: 10x Marketing l Business > Management l Jan 20, 2010 l Views: 10

    Enjoy the success that comes with successful lending and returning customers.

    By: 10x Marketing l Finance > Investing l Jan 14, 2010 l Views: 3

    The leading source of revenue for business has shifted to the online market.

    By: 10x Marketing l Internet > ECommerce l Jan 14, 2010 l Views: 13

    The ability to pull up data and forms quickly and efficiently has been and always will be a key factor to any successful business

    By: 10x Marketing l Business > Management l Jan 07, 2010 l Views: 11

    Technology is always advancing in every aspect of our lives. Learn how it’s going to affect your banking traditions.

    By: 10x Marketing l Finance > Banking l Dec 15, 2009 l Views: 24

    Add new Comment

     
    * Required fields
    Author Box
    Articles Categories
    All Categories
    1