About the Author
TJ Nelson
A web publisher for the past 4 years. TJ Nelson
shares his findings and knowledge in real estate, business and health related issues.
Commercial real estate in the United States is a billion dollar industry. Each day brokers and agents provide thousands of transactions to investors and buyers in a market that fluctuates as the economy does. In the United States, alone, property values have suffered as the rise and fall of the global economy does. With outsourcing to minimize expenses, property used for commercial development has taken a major hit and has some experts wondering if there will be a rebound.
Every city or town has zoning laws that dictate what can be used as residential property and what is considered commercial real estate in an area. These areas can differ by only a few feet but the taxes and property value are drastically different. Whereas a 1200 square foot housing property might lease for nine hundred dollars, the same equivalent in a commercial area might go upwards of fifteen hundred. Real estate investors take this into consideration when searching for commercial real estate properties.
As property lines dictate costs and values, so too does the area that the commercial real estate in the US is located. Areas in the Northwest, such as in and around Seattle, will command higher prices due to the location of prominent corporations such as Microsoft and Starbucks.
Areas in the South where giants such as Tyson Foods will not be as expensive due to the local economy and how available land is. There is more space and locales to choose from. This is a driving factor behind a companies decision on where to base their production out of. If they can save money in location, they are more likely to base their company in that area.
As mentioned before, there is a growing concern over corporate outsourcing to countries outside the United States. As commercial real estate in the US sees prices climb, the companies have to find a way to minimize their expenses. In countries where wages are considerably lower, corporations and industries are finding these as alternatives and ways to cut their expense budge.
If a person were to invest in commercial real estate in the US it is highly advisable to seek out a financial consultant and a knowledgeable broker or agent. He or she can advise on the best course of action as well as the financial obligations and taxes that will need to be taken into consideration. It is a vastly different set of rules and requirements dealing with commercial properties than personal housing properties.
Published by TJ Nelson on December 13, 2007 12:19 PM
