Those people who dabble in commercial real estate in Napa County, CA have a lot of good news to anticipate in the coming year. Even amid economic and political uncertainties, the nation’s economy is expected to continue growing over the next 12 months.
The coming calendar year will likely be a bumpy ride for the country at large. The nation’s shale boom is slowing down. Political uncertainty regarding impeachment hearings and trade disputes are slowing economic growth. What’s more, the election cycle is ramping up, and it promises to be contentious. The economy could slide or soar, depending on who is elected president in the coming months. All that combined uncertainty will see the overall economy begin to slow.
That said, according to Coldwell Banker Richard Ellis (CBRE), the largest commercial real estate services company in the world, the coming year will still see the United States economy continue to grow.
Billions in investments
The value of commercial real estate in Napa County, CA, and the United States as a whole, is expected to keep improving. CBRE’s global chief economist Richard Barkham remains confident in the combination of consumer confidence and rock-bottom interest rates. In spite of some economic turmoil, Barkham explains, “We’ll see resilience across asset classes such as office, retail, and multifamily as demand continues to buoy those sectors. And we see transaction volumes and capitalization rates staying relatively stable.”
Profiting from changing trends
Commercial construction is one sector where a slowdown may help current landlords increase their bottom line. The limited supply of new commercial construction projects should see an across-the-board increase in rent.
As online shopping becomes the new normal, the United States’ once-thriving shopping malls are seeing fewer and fewer customers with each passing year. However, one housing trend aims to breathe new life into the nation’s malls. Companies like Google and Rackspace have been purchasing malls as corporate headquarters, and the conversion of shopping malls into all-in-one housing, shopping and utility complexes is increasingly popular and profitable.
Positive net absorption is at an end
For 38 fiscal quarters, the commercial real estate market has maintained a trend of positive net absorption. That is, more space has been leased every year than has been either built or vacated. Unfortunately, in 2020, that trend is expected to end, as vacancy levels will remain at historic lows, and supply begins to outpace demand by a considerable margin.
Put down roots in wine country
The time has never been better to invest in commercial real estate in 2020 in Napa County, CA. And there’s no better team to entrust with the appraisal of your new property than County Appraisals Inc. We offer appraisals and valuations of property in wine country that are as trustworthy as they are comprehensive.
Our expertise runs the gamut and includes property commonly developed as vineyards, wineries, rural estates and single-family homes. We’re the established experts when it comes to transforming your appraisal from a whirlwind of forms and numbers into an easy-to-understand process. Visit us online or give us a call today. We can’t wait to hear from you.
Categorised in: Real Estate Appraisals
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