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Maryland commercial property values may be stagnant

According to the Green Street Commercial Property Price Index, U.S. commercial property appreciation remained unchanged in April and, the advisory firm said that values have ground to a halt. This is after many years of property appreciation that reached almost double digits annually. However, property values are still 7 percent higher than they were at the same time last year and 23 percent higher than they were in August 2007.

In a statement from Green Street, it was noted that "grade B" properties were probably worth less than they were at the start of 2016. However, the firm said that properties in quality locations were probably holding their values. The Sony Building and a building on Fifth Avenue were sold for $1.3 billion and $525 million respectively, which is seen as good news for landlords of so-called trophy properties located in Manhattan.

Those who are thinking about purchasing real estate may have many issues to consider before completing a transaction. They must first decide whether or not property values will appreciate, which could help them build equity and see a higher return on their investment. Also, appreciation may make it easier to quickly sell a property if that is necessary or desirable.

Commercial real estate development is also a complex field, and it requires participants to keep an eye on market trends. There are many other issues to consider, and some like zoning and permitting may require the assistance of an attorney who has experience with these types of matters. Legal counsel can also be instrumental in reviewing the proposed financing and purchase agreements in order to spot any provisions that could cause a problem in the future.

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