Like many others, Florida business owners may have concerns about how a potential recession could affect their company and their future financial interests. Slowing economic growth could indicate changes in commercial real estate as well, and shifting trends could determine how business owners will protect their investments in case of a downturn. When invested well, real estate can be a wise and relatively low-risk way to protect and grow money.
Trends and their potential impacts
At this point, experts predict that residential real estate will remain strong, specifically for single-family and multi-family homes. This is probable even though the numbers of residents moving from urban areas has slowed. Large markets, such as New York and Los Angeles, have seen returns to pre-COVID levels in multi-family vacancies. Mortgage rates are also climbing, and sales of newly built homes are also slower.
Experts also believe that industrial investments will slow. As interest rates rise, business owners are not expected to be able to buy commercial property at the same rate as before. Investors are increasingly attracted to retail centers anchored by grocery stores and other types of necessity retail.
Think carefully before investing
Before investing in commercial real estate, a Florida business owner may benefit from carefully considering the potential impact of his or her decisions. With a possible economic downturn on the horizon, it is prudent to be cautious before making an important decision regarding real investment, leasing or purchase. It is usually beneficial to seek the insight of an experienced real estate attorney before moving forward.
