Since the great recession, the commercial property market has steadily recovered here in California and elsewhere. Many factors have contributed to the rebound of the market to this point, but 2020 could break commercial property development records. According to CBRE Group, investments could range between $478 billion and $502 billion.
Retail, multifamily housing, office space and data centers are just some of the projects that could see growth next year. The potential for a banner year rests at least partially in low interest rates, increase flow of capital, strong consumer spending and low inflation. These factors may the forecast bright regardless of some economic challenges that could keep the economy from growing faster.
Developers and investors may find their continued investments in commercial real estate profitable. Even so, caution is always advised. Forecasts are never a guarantee. Some areas of the economy could decline, and it could have an effect on developments. Developers still need to ensure they protect themselves from setbacks.
Other factors could also affect the market next year, such as the presidential election, weaknesses in manufacturing and uncertain trade negotiations. Even so, developers could have the opportunity to thrive in the coming year. For this and other reasons, doing everything possible to keep deals on track would be wise.
Regardless of the market, every commercial real estate development requires careful attention to detail. Identifying and following all applicable rules regarding zoning, environmental considerations and more will help make any development go more smoothly. With the help of a California commercial real estate attorney with experience in a variety of developments, next year could prove as successful as predicted.