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Looking At Commercial Real Estate Development in 2018!

Every year, economists keep a careful watch on what’s going on in the different sectors of the financial world.

There have been many predictions about commercial real estate development in 2018, some positive and some negative.

Halfway through the year, many experts agree that in spite of some the naysayers, it’s been a reasonably good year in terms of commercial real estate development opportunities.

Commercial realtors should find that proceeding with cautious optimism is a good position to take.

Still Looking Good in 2018 Despite Negative Projections

At the end of 2017, there were many economic forecasters suggesting that commercial real estate development in 2018 would begin feeling the effects of a gradual slowdown that was just beginning.

In reality, while things may not be quite as busy as they have been through last year, this slight slowdown in activity has not produced any notable, negative effects that commercial real estate companies are seeing.

It has been a record-breaking time in the real estate world and with few signs of slowing down as was expected, the year is still turning out to be a promising one.

The industry as a whole should be monitoring things like consumer behavior and interest rates; however, there is no reason for developers to start backing down, at least not yet.

Commercial real estate is still on the upside of things.

Tax Cuts Have Benefited Commercial Real Estate

Something that has given a slight boost to the real estate sector are the recent tax cuts.

Some economists feel that tax affects to infrastructure funding and immigration could become an issue as time goes on.

Yet things are still moving well at the present. Tax reform has boosted the economy enough that the real estate sector is seeing positive effects.

Deals in the works that had stalled waiting to see the results of tax changes have resumed and properties are continuing to sell.

Property prices are somewhat higher right now, indicating higher risk; however, the economy overall is still supporting a good real estate climate.

Still Many Good Opportunities in Some Markets

While there is no reason to expect commercial real estate development to slow dramatically through the remainder of 2018, commercial realtors should definitely take note that some sectors are performing better than others.

Among them are industrial that is seeing high levels of growth and public REITs.

Viewed with caution last year, REITs are continuing to perform strongly this year.

Many suggest this is a good time to look into these investments; however, retail continues to take hits, although most commercial realtors expected this.

Still, there are many promising commercial real estate development opportunities available for converting retail spaces for other uses.

Cautious Optimism for 2018 and Beyond

What is the overall message for the remainder of 2018 and into the new year?

Cautious optimism and continued growth.

Forecasters are finding that conditions are still mostly positive in commercial real estate development when investors proceed carefully.

In Summary

Although there were some premonitions of doom and gloom for real estate in 2018, most experts are finding that things have remained fairly stable.

Commercial real estate development is stable in part because of tax changes and other positive economic upturns.

There are still plenty of solid development opportunities available.

As long as investors and commercial realtors proceed with caution, things are still looking good as the new year approaches!

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