Commercial Expectations and Market Realities in 2015
Economists expect a generally healthy U.S. economy in 2015. With respect to commercial real estate, interest rates are still low and volume and pricing have seen steady increases. Read this throughout report, provided by NAR, for more information on today’s market. This includes the economic outlook, capital markets, and highlights and expectations for the five major property sectors (office, industrial, retail, apartment, and hotel).
While NAR still recommends that members not use UVA (drone) technology for any purpose related to selling property, it is working with the FAA as they develop a regulatory framework that allows for the safe commercial use of this technology, as it may provide new opportunities for agents to add value to the real estate transaction. Stay on top of updates at the Drones topic page on Realtor.org.
REALTORS® APPLAUD SIX-YEAR REAUTHORIZATION OF FEDERAL TERRORISM RISK INSURANCE PROGRAM
WASHINGTON (January 8, 2015) – The following is a statement by National Association of REALTORS® President Chris Polychron:
“Realtors® applaud the U.S. House of Representatives and U.S. Senate for prioritizing the reauthorization of the federal terrorism risk insurance program and quickly passing the Terrorism Risk Insurance Act, which authorizes the program for six years. When TRIA lapsed at the end of 2014, Realtors® urged swift congressional action to renew the program and return certainty to the commercial real estate market.
“TRIA provides a crucial framework for economic recovery in the wake of a catastrophic terrorist attack and allows the U.S. to maintain a stable terrorism insurance market so employers can invest in properties, create jobs and insure against losses due to a terrorist attack. Without TRIA, many property owners with existing commercial mortgage balances that require terrorism insurance would be in technical default of their mortgage terms.
“The bill sent to President Barack Obama’s desk today provides commercial property owners with sustained and affordable access to terrorism insurance, which is required by commercial mortgage-backed securities. NAR urges Obama to sign the TRIA reauthorization without delay.”
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
# # #
Invest in Yourself and Strengthen Your Foundation
As 2014 comes to a close, benefit form the advice of the commercial industry’s top professionals on how to grow one’s career in commercial real estate through education, networking and finding new ways to give back at local, state and/or federal levels; see who was honored with a 2014 National Commercial Awards; save money with useful business tips for year-end; and prepare for the new year with 10 big picture industry trends for 2015.
Despite a slowing global economy, forward economic momentum in the U.S. should keep commercial real estate activity on firmer footing, according to the National Association of REALTORS® quarterly commercial real estate forecast.
Lawrence, Yun, NAR chief economist says commercial activity should progress at a gradual pace heading into 2015. “Solid economic growth in the third quarter proved that the second quarter wasn’t an anomaly, as business spending increased, commercial construction rose and the labor market continued to make positive strides,” he said. “Job growth is the catalyst to improved demand for commercial real estate leasing and new construction projects.”