Commercial real estate issues that may arise in 2017

The commercial real estate market, much like the economy, has been recovering from the recession less than a decade ago. This has resulted in some volatility and unpredictability for tenants, landlords, developers and brokers since then. This year, however, experts in the commercial real estate industry forecast a more optimistic year ahead.

According to this article in the Sun Sentinel, commercial real estate markets across parts of Florida are expected to grow and get stronger in 2017. These predictions, along with the report we examined in our last post about the rate of business closures in metro areas around the U.S., might suggest that there could be certain trends in commercial real estate transactions and dispute of which people should be aware.

For instance, even though there are businesses closing in areas across Florida, existing businesses are poised for growth. This can mean that certain commercial spaces will be highly desirable when they become available. This can drive up competition and sales prices.

Additionally, companies may be expanding or changing their operations specifically in response to the surge in e-commerce. Instead of opening up office space, many companies are looking for distribution spaces and warehouses.

Further, reports note that multiple large retail stores have been closing locations, like Macy's and Sports Authority. However, there may be challenges in re-purposing such large spaces, especially considering the trend toward smaller brick-and-mortar locations with more robust online sales.

When you take these trends into account, it seems clear that the commercial real estate market will be active in the year ahead. And whether you are closing a shop, opening a business, adding locations or expanding certain elements of a company, you will want to be sure that any decision you make regarding real estate transactions is an informed one.

Discussing potential obstacles, disputes and opportunities with your attorney before conducting any type of commercial real estate transaction can help you accurately examine the situation and hopefully avoid any costly mistakes.