Experts predict favorable commercial real estate market for 2015

In a recent article, CNBC reports that real estates analysts describe the commercial property market a "Goldilocks" situation, meaning that current conditions are "not too warm, not too hot, but just right."

"And yet, scratch the surface of this seemingly ugly recovery and one sees a more attractive inner beauty to this expansion, particularly for the commercial real-estate sector: robust enough to fuel tenant and investor demand for property but not so strong as to overheat markets and induce unneeded speculative development," explains Andrew J. Nelson, chief economist for Colliers International.

As a result, CNBC reports, vacancies are disappearing. The rate of occupancy might be slower than is typical in the expansion phase of a real estate cycle, but declines in commercial vacancy are showing slow but sure progress. Compared to recent years, 2015 could be a favorable year for corporate entities to explore new real estate, particularly as other sectors of the economy improve and revenues increase. Nelson projects that over the next few years, market conditions for commercial property will continue to climb back to their pre-recession levels. 

Working with business partners, real estate professionals need to be able to provide excellent property valuations to correspond with actual replacement cost. Real estate is a major investment for any company, and sustaining damages from unforeseen circumstances can cripple businesses until claims are settled. Arming property owners with the most accurate, up-to-date property valuation means that their insurance agreements reflect adequate protection for their important assets. 

At e2Value, our property valuation calculator can help professionals provide consistent, complete information about replacement value. Contact us today to learn more about our valuation solutions for residential and commercial property.