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CEO believes real estate market is not in a bubble

People involved in the commercial real estate market in Maryland may have concerns that the rising prices indicate that the market might be headed for a bubble. One real estateprofessional, however, believes that there is no real risk, at least in the multi-family unit area.

The concerns about a commercial real estate bubble come as prices in major cities, such as New York, Los Angeles, Washington, D.C., Chicago and San Francisco, have continued to skyrocket in successive quarters. The CEO of the Peebles Corporation, however, believes there is no cause for alarm in the residential portion of the commercial market.

In gateway markets, he believes there is opportunity because of the limited supply of housing in them. One concern, however, is that residential real estate prices are getting to be so high that many would-be buyers are being priced out of the market, including those who are in the middle- and upper-middle income classes. The Peebles CEO indicates he is looking to expand options to include both luxury and affordable housing options in those gateway cities. He did admit that the cost of construction alone may be an impediment to pricing the units in a manner that people could afford.

People who are involved in the commercial real estate market may want to consult with a real estate attorney about whether it is a good time to invest or not. They may also want to seek advice about whether it is a good time to sell commercial real estate holdings they currently have. An attorney may be able to analyze the market in the area in which the property is located to provide a thorough assessment of the client's options. If selling is not a good idea, they may help with drafting leases that are the most beneficial to the client.

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