Commercial real estate in Maryland is delivering mixed results for investors with returns for both retail and office space still in negative territory. On the flip side, industrial returns are in the black and starting to look healthy. It?s hard to make long term predictions when it comes to commercial real estate, however, when industrial space starts to strengthen, any resultant increases in employment often delivers positive effects to retail, office and domestic real estate prices. Whether or not increases in industrial prices will continue is another matter.
Year on year, industrial real real estate has risen 5.8% for rental properties and 2.9% for sales. In the same period, the cost of office rentals have grown 2.2% while the purchase prices have dipped 4.6%. For investors, the biggest concern is in retail space with costs dropping over 10% for the year. Sales prices for retail space have also dropped, although only 2.2% for the year.
If you are looking to invest in commercial real estate in Maryland,?a closer look at real estate trend graphs is quite revealing. Retail had a resurgence in mid 2010, however the trend lines are all down. Office space for sale has been dropping steadily, however, rental returns over the last three or four years are fairly flat while industrial properties are looking a little like a ?U? rather than the preferred ?J? curve ? however those trends are up.
State-wide trends are hard to fathom and they are affected by good returns in some areas and very poor returns in others. A local commercial real estate agent can help you to find the individual hot spots around the state while avoiding those that are still on the downward slide. In some areas, while prices may be dropping, if rental returns are flat, or rising marginally, they may represent good value for the investment dollar. It?s still a time for caution however, unless you?re in a profitable business ? then buying rather than leasing could be a good long term option. You can see the charts and data on these trends here.
Related posts:
- Commercial Real Estate In Maryland ? Buy or Lease?
- Your Career In Commercial Real Estate
- Tips for Purchasing Commercial Real Estate
- Commercial Real Estate ? Following The Housing Market
- Great Tips for Investing in Commercial Real Estate
Source: http://www.realestatebriefings.com/commercial-real-estate/marylandcommercialrealestate/
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