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Changes in the commercial real estate market

Commercial real estate investors in Maryland are becoming much more sophisticated as new investment structures emerge. While real estate used to be thought of as an old-fashioned asset class that was ignored by institutional investors, it now makes up almost 10 percent of institutional investment portfolios. Now, institutional investors own about $6.7 trillion worth of commercial real estate properties.

Institutional investors are now turning to commercial real estate and managing complex global portfolios. Despite the changes in commercial real estate investment strategies, there is still a lack of up-to-date technology platforms to help investors manage their global portfolios. Capitalizing on this void, commercial real estate tech companies raised $90 million in investments during the first half of 2015.

With the rising popularity of commercial real estate investing, there is a lot of competition in the market. Volatility in the equity markets and low interest rates have also contributed to the competitive landscape of the commercial real estate market. Now, commercial real estate owners must compete for investors using real-time data. Aggregating and analyzing commercial real estate data for modern investors requires employees who have new kinds of skill sets. As a result, there is fierce competition for talent in the commercial real estate industry.

A person who would like to begin investing in commercial real estate may want to speak to an attorney with knowledge of the market. An attorney may be able to help an investor during the financing and purchasing stages of commercial real estate investment. If an investor wants to develop a property, an attorney may be able to help them understand local zoning laws or apply for zoning variances.

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