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NAR economist expects commercial real estate prices to plateau

Commercial real estate investors in California might find good opportunities beyond big cities. The chief economist from the National Association of Realtors said that investors have curtailed their activities around Class A assets. Smaller markets, however, have been presenting buyers with chances to buy properties with the potential for stable and consistent profits.

Overall, the market for commercial properties across the country looked promising, the economist said. Vacancy rates should continue to decline because of economic growth. The forecast from the association predicts that the vacancy rate will go down to 11.9 percent during the year. This represents a decline of 1.1 percent across all sectors. Among industrial properties, available units stood at only 7.8 percent, and retail units should edge down 0.4 percent to an 11.4 percent vacancy rate. Multifamily housing will continue to fill up as vacancies decline by 0.5 percent to 6.1 percent of total units.

The economist attributed the strength of the commercial market to a healthy labor market, and confidence among consumers has increased spending. The last quarter produced an economic expansion rate of 3 percent. The NAR representative expected the economy to maintain investors' interest in commercial properties.

The intricacies of commercial real estate sales and leasing often prompt individuals and businesses to seek legal advice. A person with questions about real estate litigation concerning a construction project or property management company could gain insights about how to achieve goals by talking to an attorney. An attorney may be able to analyze contract terms and develop a strategy for defending the person's position. If a lawsuit becomes necessary after a contract dispute, an attorney could organize the evidence and prepare the court filings.

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