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Company predicts 2016 commercial property growth

Commercial real estate financial firm Walker & Dunlop, which has offices in Maryland and around the country, believes that 2016 holds the promise of growth. The company's CEO says that 2015 was a successful year and expresses his conviction that the market will continue on healthily, noting that tumultuous debt capital and equity markets could provide opportunities for his firm to profit. The company told shareholders that in addition to realizing gains from mortgage banking, mortgage servicing rights and servicing fees also resulted in revenue.

Observers say that the results the company posted also reflected the fact that the real estate industry isn't completely stable. In total, Walker & Dunlop's fourth-quarter revenue rose 8 percent to $121.4 million, but this was still less than initial predictions of 14 percent growth that investors were hoping for. Overall income increased 26 percent to settle at $20.4 million, and share earnings that slightly exceeded the consensus forecast may have contributed to the firm's plans to repurchase $75 million of its own stock.

Walker & Dunlop's CEO expressed his intentions to make the company a leader in multifamily financing. Observers said that if the firm's more traditional financing competitors withdraw from the commercial real estate market, the firm may encounter increased opportunities.

Although commercial real estate fluctuates along with the rest of the economy, investors are still bound to find attractive opportunities. The profitability of different investments depends on many factors. In addition to property values being affected by the status of markets, laws, regulations and the specifics of individual deals all play a role in determining whether purchasers are able to achieve their business goals. Investors may find it wise to have the assistance of an experienced attorney in conducting due diligence of proposed targets.

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