Real estate cycles are a funny thing, hind sight is 20/20 and when looking back at the history of real estate cycles ups and downs we always find a clear and concise cause and effect. Whether we look back just eight years ago to the financial crisis or 15 years ago to 9/11 we can pinpoint the actual cause for a downturn in the market.
So now what? What if we can predict or “forecast” the future recession? What would we guess it to be? Could it be the following:
•The rising cost of health care
•The upcoming presidential election
•Civil unrest in the middle east
•The ever rising national debt
•The mysterious Chinese GDP
With all of these possibilities right in front of our eyes and others that we just can’t see clearly today what’s to say that the next real estate recession is not just months away. The typical cycle is 7-10 years which puts us right in the middle. Forecasters are predicting the next recession to hit us within the next 18 months and history would be on their side.
Having said that, there is something we can do. We can forge ahead, making wise business decisions and not taking huge risks. If you are in position to expand then do so, just do so wisely and efficiently as we have all been doing since the great recession. Do not over leverage due to attractive interest rates, rather make sound decisions based on business needs or investment models.
Almost every sector of the commercial real estate market has rebounded to pre-recession highs and velocity is still strong. Vacancy rates are at all-time lows, job growth is still rising and the world is hungry to succeed. Let’s just be sure to be aggressive and wise at the same time.
Tamara Blau is a sales associate with The Blau & Berg Company and is responsible for representing both buyers and sellers, along with landlords and tenants.
About The Blau
& Berg Company
Since its inception in 1932, The Blau & Berg Company has secured a leading position in the New Jersey and Tri-State commercial real estate market. Headquartered in Short Hills, New Jersey, we are an independent, full-service commercial real estate brokerage firm providing services in the industrial, retail and office spaces, including: site selection, acquisitions, dispositions, leasing, tenant representation, portfolio sales, asset repositioning, and property & construction management.
The ability to seamlessly integrate our local expertise and commercial real estate market knowledge, while networking globally through distinguished affiliates such as The CCIM Institute (CCIM) and The Society of Industrial and Office Realtors (SIOR), insures our clients’ success.
From ground up construction to investment sales, professionals at The Blau & Berg Company provide sound management decisions and maximum exposure within the commercial real estate marketplace. Utilizing cutting edge technology and time-tested principles, we bring value to every facet of our commercial real estate assignments.
we have affiliations throughout the U.S. and worldwide to successfully network on your behalf. n