Commercial Real Estate Archives

Commercial property prices plunged in Pennsylvania and around the country in the wake of the 2008 financial crisis, and federal regulators and watchdogs have kept a close eye on the U.S. financial sector in the years since to prevent another debt-fueled economic emergency. The Office of the Comptroller of the Currency, which is an independent bureau within the Department of the Treasury, releases two reports each year about the state of American banks, and the first 2016 report indicates that concern is growing about relaxed underwriting standards in the residential and commercial property markets.

When a commercial real estate investor considers purchasing a building in Pennsylvania, the zoning of the property will be very important. If the property is not zoned for commercial use, an investor may not be able to develop the structure in the way that they would like to. A property’s zoning shouldn’t be an absolute deal-breaker, however, because it can often be changed.

Pennsylvania law outlines what is expected of landlords, and at least one thing is exceptionally clear — retaliating against tenants is expressly prohibited. Business owners sometimes struggle to identify this type of behavior, especially as they focus on the ongoing success of their commercial ventures. Landlord retaliation can even force business owners to take desperate measures in attempts to retain their commercial space.

Many Pennsylvania developers are preparing for their commercial real estate loans to mature. When that occurs, most will need to refinance their mortgages. They may find it difficult to find financing when they need it, however, especially if they own multi-family properties or strip malls.

One possible way that Pennsylvania business owners can save money is by negotiating their commercial leases. Property owners understand that it is normal to negotiate the terms of commercial leases since there are no standard forms that are used. When the market is weaker or the property is not in a prime commercial spot, more terms may be negotiable.

Many investors in Pennsylvania and around the country are starting to take a closer look at the commercial and residential real estate markets. This interest is fueled partly by the persistently sluggish returns of more traditional investment vehicles like the stock and bond markets, but it is also being driven by a number of new real estate investment options that do not involve buying properties or tying up large amounts of capital for long periods.

Pennsylvania investors are likely wondering how the U.K.’s exit from the European Union will impact real estate markets in the U.S. and abroad. Some analysts believe that there will be uncertainty in the short term and that the move could potentially bring more foreign real estate capital to American shores.

Pennsylvania residents are probably aware of the importance of consumer spending to the U.S. economy. There are approximately 50,000 shopping malls spread across the country to cater to the needs of American consumers, but the advent of the information age has altered the way that the nation shops. Once dominant retail chains like Blockbuster Video, Borders Books and Sharper Image have already closed their doors, and many industry experts believe that more household names will fall victim to online shopping in the near future.

Some Pennsylvania commercial real estate investors may be aware that there are predictions that prices may fall up to 5 percent in the year ahead. This was the prediction of a report released on May 20 by the Pacific Investment Management Co. The prediction comes after six years of rising prices.

With commercial real estate prices rising in most sectors, investors in Pennsylvania may wonder where to invest. According to the CEO of Marcus & Millichap, the nation’s largest real estate brokerage firm, prices for office properties are still below their pre-recession levels. Office properties may be a good investment opportunity as prices are expected to go up.