Article by Rick Hendershot

In its most recent report released Jan 24, The National Association of Realtors anticipates “solid” gains in the US commercial real estate sector.

David Lereah, NAR’s chief economist said “Even with a lot of new construction around the country, we are seeing healthy levels of commercial real estate space being purchased, rented and occupied.

As a result, vacancies are declining across the board – this is improving the fundamentals for commercial real estate sectors into the foreseeable future.”

The report also sees rising concerns at the Fed that commercial real estate is being concentrated in some banks. According to Federal Reserve Governor, Susan Bies, The Fed is considering issuing “supervisory guidance” on risk-management to avoid commercial real estate exposure that was typical of previous economic downturns.

According to NAR’s latest forecast vacancy rates are generally declining across most of the 57 metropolitan areas examined. This means rents are stabilizing in all four commercial market sectors: office, retail, industrial and multifamily housing.

Employment increases in all sectors is what is driving the lower vacancy rates. According to the NAR, these rates are expected to fall to 14.1 percent by the fourth quarter of 2005 and to 12.2 percent in 2006. This is down from 15.4 percent in 2004. They project that office space rent will grow 4.4 percent for 2005 and 4.9 percent next year That is up significantly from 2004 when the increase was just 0.4 percent.

Their analysis of specific metro areas for investment singles out New York, Los Angeles, Washington, San Francisco and Chicago as good targets for commercial real estate investment.

In the industrial sector vacancies are projected to go down to 8.8 percent by the end of 2006 compared to 10.9 percent last year. Industrial rents, actually declined slightly in 2005, but are projected to increase 2.5 percent in 2006.

Retail space vacancy is predicted to hit 6.8 percent in the fourth quarter of 2005, down from 7.5 percent the previous year. Rents are expected to rise 3.2 percent in 2006 after a similar increase in 2005. Increases in 2004 were 3.3 percent.

**Some Local Commercial Real Estate hi-lites**

The St. Louis region had an all-time high of .2 billion in commercial real estate transactions in 2005. Local real estate experts predict it will be even higher in 2006 – perhaps as high as .4 billion.

A Colliers report found that industrial vacancy rates in the region were at a five-year low, and demand for office and retail space had fully recovered from the recession a few years ago.

Part of what is driving the real estate boom is that investors have moved from the stock market to commercial real estate. Many investors prefer commercial real estate because it is more transparent and provides a steady cash return as well as a reliable rate of appreciation.

In the Bradenton, Florida area (Manatee County) commercial real estate is also going strong. Local experts say commercial development follows residential, so given the rapid pace of residential development in most of Florida over the last few years, there is little likelihood that commercial development is going to slow down any time soon.

Development here as elsewhere is also dependent on interest rates, but in Florida the cyclical nature of real estate development is somewhat mitigated by the unique location and climate, as well as a shifting demographic pattern.

Lack of convenient parking, and traffic on main downtown streets, as well as a limited number of downtown development sites are the biggest challenges facing commercial real estate developers in this smaller Florida city.

In the Marina Del Rey area of Los Angeles about .5 billion in commercial and residential improvements are underway. The county is encouraging leaseholders to make improvements to boost visitors and increase county revenue.

So far two shopping centers have been renovated and the marina’s shops and restaurants, called Fisherman’s Village, will be completely renovated.

Approximately 1,600 apartments are being added, at the same time as reducing the number of boat slips at the 40-year-old marina.

About the Author

Rick Hendershot does website promotion | Mortgage and Loan Information | Commercial Loans without banks

During the current economic climate, there are factors that entrepreneurs look at more closely when it comes to starting up a business.  The “where” and “how much” factors become a bigger part of the decision, as one looks to trim any unnecessary cost factors.  Gone are the days where if you were technology based, you’d set up in Silicon Valley or if you needed to network with business contacts – set up shop in New York.  Ironically, thanks to modern day technology, you can set up in a much wider range of locations.

Entrepreneurs look at factors like the ease of recruitment, and as a result – have looked into the central states of the US, such as Colorado, where the workforce is well educated, quality of life is good, and cost of living is a big step lower than on the coasts.  

With hopes up about stabilisation of the economy, this is a great opportunity for aspiring entrepreneurs and small business start ups alike to take things to the next level.  Over the last few years, several angel groups and individual investors have started to set up shop in cities like St. Louis (such as the Arch Angel Investor Network), again bucking the general trends.  

On the Central Investment Network – entrepreneurs in the Central states of the US get another chance to connect with angel investors.  Members can get their business ideas and plans out to hundreds of local investors – and since Central Investment Network is part of the Angel Investment Network, members can connect with thousands of other investors from around the world.  In fact the network grows continuously, with branches in over 40 countries and investments occurring both on a local and international basis.

Of course, the plans have to be well thought out and organised, as while entrepreneurs may have less competition, the investors are also more choosy.  Still, there are signs that more successful angel investment strategies such as venture capital investments are occurring within the central states.  While some venture capital backed companies have gone bankrupt this year in the U.S, almost all of them are California based, and none of them are in the states that the Central Investment Network covers – which includes Colorado, Kansas, Missouri, Montana, Utah & Wyoming.

Find out more, by visiting http://www.centralinvestmentnetwork.com

More Investment Articles

Having a successful home based business is a truly wonderful experience and most home based business operators have no desire to move into office space at all – but the fact is that having an office address can give your business greater credibility and the illusion of being a more professional operation, and boost your turnover. Most home business operators could use a little of that!

The good news is that you can have it all. For less than a month you can have a Manhattan virtual office from VH International Business Solutions at a fabulous street address that you’ll never have to go to. For a little extra you can have a Manhattan telephone number that will divert to the comfort of your home or a message service from which you can collect your messages when it suits you.

Imagine having a prestigious Manhattan office address, a Manhattan “presence” for your home based business – and still being able to slide out of bed just when you like, eat a leisurely breakfast then stroll into your home office dressed just as casually as you like. You’ll check for messages from your Manhattan office, then get to work!

You’ll be able to use your Manhattan business address on your cards and website, giving prospective clients an excellent impression.

If you have prospective clients in Manhattan you can even arrange to meet them at your office address! Simply book an office for the nominated time and set yourself up comfortably in there – your clients will be greeted at our reception area and escorted to your office. When you’re done, it’s back home to the casual clothes and flexible time schedule you’ve come to love!

Seriously, who’d want to work in an office full time when you can have a home based business and a Manhattan virtual office from VH International Business Solutions?