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October 2016 Archives

Pension funds not put off by CRE warning signs

Institutional investors like insurance companies and hedge funds are major players in the commercial real estate sector in Maryland and around the country, and pension funds have been particularly bullish in the past several years. The market's financial giants tend to become far more cautious when commercial property prices come under pressure, but a Pension Real Estate Association representative has stated that pension funds are expected to continue buying well into 2017 despite signs indicating that the market may be maturing.

CRE investing after the JOBS Act

Since the Jumpstart Our Business Startups Act was passed in 2012, it has been easier for commercial real estate developers in Maryland to solicit investors. Now, opportunities can be advertised to accredited investors through online channels, opening up the door to a lot more potential participants. The Securities and Exchange Commission has reported that there are now over 12 million households that could qualify as accredited investors in the United States.

Changing banking interests in commercial real estate

Maryland developers may find that there are fewer financing choices in commercial real estate as smaller banks face regulatory challenges in this sector. Federal regulation of this type of lending has recently resulted in greater scrutiny, which has caused many small banks to move away from these financing options. Small banks have begun to sell the commercial real estate loans that they hold, and they are reducing their future lending in this area as well.

Four tips to ensure your business purchase goes well

Things are going great, and you are ready to expand. Whether you are adding business assets to your own or looking to break into something new, purchasing an existing business can be an excellent and exciting opportunity. Before you jump head-first into a major purchase, there are some things you need to know. These four tips will ensure that you do your due diligence and make a savvy investment rather than a reckless purchase.

Global trends and effects on commercial real estate

People in Maryland who invest in commercial real estate may be interested in five global trends likely to affect that market. One of those revolves around political and economic uncertainties with the Brexit vote in the United Kingdom. However, this is likely to be positive for commercial real estate in the United States as the market there is more attractive to foreign investors as a result of being more stable. According to The International Monetary Fund, there will be economic growth throughout the world.