Bernstein & Feldman, P.A.

Providing Personal Counsel
And Representation For Over
30 Years

Hotels and industrial real estate could benefit investors

Maryland commercial real estate investors will likely find some profitable opportunities in hotels and industrial real estate. Analysts have identified support for revenue growth in both of these sectors.

As of July 2016, 1,305 hotel projects were underway nationwide according to researchers. These new hotels or hotel expansions will increase available rooms by 171,276. Although forecasters expect room supply to outpace demand in 2017, current growth in average daily rates and revenue per rooms will insulate investors from slightly lower occupancy in the future.

Industrial properties, especially those that could operate as logistics facilities for online retail, have not been overbuilt. Demand remains ongoing as builders produced 100 million square feet of new industrial space during the first six months of 2016. The chairman and CEO of Prologis said that vacancy rates were at historic lows. Asking rents have been rising as well, and builders have another 190 million square feet of space under construction.

A person planning a commercial real estate purchase or sale will need to consider local market conditions as well as overall trends. The advice and services of an attorney during a commercial property transaction or building development could protect the person from liabilities and limit regulatory setbacks. For a new building project, an attorney could investigate the zoning at the proposed site. Negotiations with regulators to gain building permits could be handled by an attorney. The person could also discuss the details of a financing deal with an attorney. The terms of the loan could be explained by an attorney.

No Comments

Leave a comment
Comment Information