Financial experts and real estate investors in Maryland and around the country are becoming increasingly concerned about the beleaguered retail sector. Consumers primarily concerned with convenience, value and selection are being lured away from traditional brick-and-mortar stores by online retailers like Amazon, and empty big-box retail outlets and vacant shopping mall spaces are becoming increasingly familiar sights on the American landscape as a result.
Studies suggest that business leaders in Maryland and around the country remain optimistic about the state of the economy. The Tennessee-based National Federation of Independent Business reported in February that optimism among entrepreneurs was soaring, and the Business Roundtable says that the CEOs of 100 large American companies also believe that growth will continue. Small business owners are said to be more bullish than they have been in decades, and CEOs are reportedly as enthusiastic as they were in late 2009.
The looming threat of additional interest rate hikes does not appear to be enough to deter investors in Maryland and around the country from the commercial real estate sector. A presidential administration vowing to slash regulations and an economy that continues to grow are enough to assuage fears of higher borrowing costs according to a survey of investor intentions released by the CBRE Group. The Los Angeles-based organization reports that real estate investors today are slightly more optimistic than they were a year ago.
When people are preparing to sell commercial real estate in Maryland, they should avoid relying on the buyers' attorneys to represent them through the transaction. Buyers' attorneys represent the interests of their clients and work to advocate for them. The interests of sellers are often different than those of buyers, and having separate representation is a good idea.
The volume of commercial real estate deals in Maryland and the rest of nation fell by 11 percent in 2016, something that has not happened since 2009. A recent Wall Street Journal report reveals that prominent real estate investors are cutting their holdings and withdrawing money from potential investments. This has led many to wonder why the significant players in the real estate market, such as asset managers at hedge funds, pension funds and private equity firms, are pulling out of the market.
From property management platforms and big data analytics to lending and investment marketplaces, commercial real estate investing in Maryland and across the US is easier today than ever. With advancements made since 2015, such as process automation and smart cities, commercial real estate businesses are likely to grow.
Maryland commercial real estate developers may be able to obtain the funds they need from a startup located in the Washington, D.C., area. RealAtom is a web-based lending platform that offers services similar to those offered by LendingTree. LendingTree connects lenders with borrowers interested in obtaining credit cards or mortgages, and RealAtom is designed to connect individuals interested in borrowing money for commercial real estate with lenders.
The sharp 20 percent increase in 2016's fourth quarter commercial lending volume over the previous quarter is being seen as a positive sign for 2017. While overall figures for 2016 fell shy of surpassing the previous year's figures, commercial real estate lending remains strong, according to an assessment put forth by the Mortgage Bankers Association (MBA). This nationwide trend is also good news for Maryland developers.
Maryland investors and developers who are involved in the commercial real estate market might want to look to other industries in order to predict where the future of commercial real estate may lie. One example of a different sector having an impact is cloud-based internet technology's effect on north Texas.
Commercial real estate investors in Maryland and around the country can expect steady growth and fewer vacancies in the year ahead according to several industry groups, but experts say that the current cycle may be nearing its peak. Robust growth in smaller markets during the fourth quarter of 2016 was offset by declining sales in large cities according to the National Association of Realtors, but the trade association predicts that vacancy rates will decline in all major commercial property sectors in 2017.