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Commercial real estate forecast

Commercial real estate industry professionals and investors in Maryland may want to learn about the recent forecast for industry growth that has been issued by the Urban Land Institute Center for Capital Markets and Real Estate. The report, released on April 8, demonstrates that economists believe the commercial real estate market should experience continued growth for the next three years.

For 2015, the commercial property transaction volume is anticipated to rise to $470 billion, which is an 11 percent increase over 2014's figures. The volume is expected to again grow from that level in 2016 and 2017 by an additional 6 percent, with expected revenues of $500 billion in each year. A total of 46 economists were surveyed for the forecast. They all agreed that their will be an increased rental growth due to improved occupancy and vacancy rates in commercial properties.

The issuance of commercial mortgage-backed securities is also expected to increase, with expected totals for 2015 of $115 billion, for 2016 of $133 billion and for 2017 of $150 billion. Commercial property prices are forecast to increase by an average of 7.6 percent for each of the next three years as well.

ULI's forecast is good news for all who are involved in the commercial real estate industry. The expected growth demonstrates the affect of the improving economy as more people are finding employment again. With the market being robust, those who are interested in completing commercial real estate transactions may want to seek a consultation with a real estate law attorney who has experience in handling the complexities involved with these types of matters. Such an attorney may help by drafting and reviewing purchase agreements and leases as well as in obtaining the permits and licenses that may be required.

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