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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.

Another factor is cap rate environment and low interest rates. Any rise in interest rates before the end of 2016 is predicted to be a minor one. It is unlikely that cap rates will surge, but indicators show that they might begin to show upward movement. Foreign investment in the U.S. is a third factor. Even if Chinese and European investors are dealing with slower growth and less income, there are still plenty of other investors throughout the world with capital.

New supply is slowing, and lenders are particularly reluctant to invest in the hotel and hospitality business. Student, senior and multifamily housing as well as single-tenant industrial all show modest growth. Finally, volatile energy markets and an oversupply of oil will continue to have an effect on commercial real estate.

Real estate investment can be complex, and a person who is interested in the industry might want to work with an attorney. An attorney may be able to assist in a variety at issues that may arise over the course of purchasing and ownership ranging from the initial purchase, contract disputes, liens, zoning issues and more. An attorney also may be helpful if a person has decided to sell.

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