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Expected 2018 commercial real estate trends

Developers, investors and buyers who are involved in the commercial real estate market in California might want to be aware of the trends that are expected during 2018. It is important to understand where the market might be headed in order to reap the most profits and negotiate the best deals.

According to the chief economist at Jones Lang LaSalle Inc., people should take the hype for and against tax reform with a grain of salt. While tax cuts might lead to a short-term boost in the economy, the drag that increased deficits cause is likely to prevent any meaningful long-term growth. The economist recommends that prospective business tenants might want to look at spaces that are located in the suburbs as opposed to the city centers for better deals.

Experts also believe that the overall picture for the commercial real estate market should be positive. However, they report that sellers may point to the economy in an effort to demand higher prices while buyers may point to rising interest rates to say no. Overall, they expect unit sales to decline from 5 to 10 percent during the year. In 2019, the growth of the commercial real estate market is also expected to slow, which people might want to keep in mind during 2018.

Businesses and investors who are interested in the commercial real estate marketplace might want to get help from experienced business and commercial law attorneys who can help by offering legal guidance during transactions and with researching them thoroughly to make certain that the deals are sound. If disputes arise, the attorneys may advocate for their clients' financial interests through real estate litigation.

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