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Featured Advisor



Kim Butler
President

Partners for Prosperity, Inc.

City:Mt. Enterprise

State: TX



BIOGRAPHY:
I have 20+ years of handling alternative investments in cash, growth and income for clients nationwide.  I strive to help my clients with all things financial in every way possible over the phone and the web.  I own an alpaca farm which I enjoy working during my downtime.  I also enjoy gardening, writing and reading books.  I also train other advisors on Prosperity Economics.

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Commercial Real Estate Market Trends Favor Investors

Declining vacancies favor millionaires heavily invested in rental properties. What are the latest commercial real estate market trends?

| BY Adriana Reyneri

The commercial real estate market is slowly building momentum, according to a quarterly forecast from the National Association of Realtors, and that’s good news for Millionaires who tend to invest heavily in property. What are the latest commercial real estate property trends?

Vacancy rates for commercial properties are expected to decline across all major commercial real estate sectors over the next four quarters, according to the Chicago-based trade association, which forecasts a 1 percent drop in vacancies for the office market, 0.6 percent in the industrial sector, 0.2 percent drop for retail properties and 0.1 percent for multi-family housing, a sector that has already experienced a strong recovery.

As vacancies fall, rents are expected to rise across the sectors in 2013. The association predicts a 2.5 percent increase in office rents, a 2.2 percent rise for industrial properties, 1.4 percent for the retail sector and a 4.6 percent increase for apartment rentals, a sector that should experience a 4.1 percent increase in 2012.

Rental income is one of the top three sources of revenue for the average $25 Million Plus investor, who invests heavily in real estate as part of a strategy to build and consolidate wealth. A recent Millionaire Corner study, $25 Million Plus Investor 2012, finds that these affluent households receive an average $7.7 million in income each year, with nearly $1.2 million coming from rental properties.

Commercial real estate market trends are strongly dependent on future job creation, Lawrence Yun, chief economist for the association, said in a statement. “The economy is expected to grow 2.5 percent next year, and with modest job creation, assuming there is not fiscal cliff, the demand for commercial space will graduation rise.”

Tight credit conditions and uncertainty over economic policy continue to impact, commercial real estate market trends, Yun said. “