Factors that Led to Substantial Increases in Industrial Real Estate Values
The pandemic turned up the heat on the real estate market in many ways. One major winner of this trend is warehouse owners. Warehouses traditionally are not considered prime real estate because of their location and purpose. The pandemic sharply increased online commerce and the need for increased stock and storage facilities of businesses. Companies of all sizes needed to seize on more space or face falling behind in their respective markets. Warehouse owners found their properties fetching double the price they paid just a couple of years prior. This real estate trend has continued across the country.
The Sustainability of this Boom
The boom in residential real estate is more likely to fade before the boom in industrial real estate simply because of the value propositions. Warehouse facilities will likely continue to bring in substantial returns as the demand for e-commerce continues to increase. The residential real estate boom has experienced a bit of a slowdown, but as long as lenders continue to give out loans with low interest rates, people will continue to have buying power. When many people have buying power, competition and prices increase for available properties. Companies are buying warehouses largely due to need, and the more space they have, the more money they can make if their demand is consistent.
Interested in Industrial Real Estate?
If you're looking to purchase industrial real estate, having an attorney's help can be beneficial. Understanding property values is a must for any prospective purchaser. Property values across the country are significantly higher than pre-pandemic levels. An attorney can help you assess the pros and cons of your desired property and negotiate and draft your purchase contract. If you are facing eviction, foreclosure, or have other real estate questions, then call us so we can help!
Get Professional Assistance
To schedule a consultation with an experienced attorney at The Law Offices of Melvin Monachan, call us at (347) 389-1682 or contact us online.