14 West Hawaii Real Estate | November 23, 2018
Realtors express confidence in commercial real estate, see a stable year to come
While challenges face
many of America’s
commercial real estate
markets, Realtors
specializing in the sector should
have confidence for growth to
remain steady in the coming year.
That’s according to the sentiments
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Mortgage Broker/Owner
Hi - 224003
Hi - 217406
PHONE: (808) 327-0404
CELL: (808) 960-3457
barbara@apexmortgagehawaii.com
apexmortgagehawaii.com
76-6225 Kuakini Hwy. C-106
Kailua-Kona, Hawaii 96740
Consulting Sales/Leasing Services Property Management
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• Consulting
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is the leading full-service Commercial Real Estate fi rm on
the Big Island. TCG is looking for potential qualifi ed tenants
as well as commercial property owners who need leasing
services for their property or a Leasing Agent and Property
Manager. They also offer consulting services for commercial
real estate issues.
Monique Peacock, (PB)
RB-19825
PO Box 908, Kailua-Kona, HI 96745 • Offi ce (808) 329-1111
www.TCGKona.com • email: mp@TCGKona.com
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Joseph A. Garcia
BIC
Christina Sotelo
BA
of two economists who spoke at a
commercial economic issues and
trends forum at the 2018 REALTORS
Conference & Expo in Boston.
National Association of Realtors’
Chief Economist Lawrence Yun was
joined by Dr. Sean Snaith, Director
of the University of Central Florida’s
Institute for Economic
Competitiveness, to discuss
their outlook on the
commercial real estate market.
Both speakers agreed
that the commercial real
estate market has improved
and that continued growth in
the economy will accelerate
leasing and property
management activity. However,
difficulties remain regarding
regulatory issues and rising
interest rates, they said.
“The economy is strong
and we are seeing solid job
gains, with no triggers to
cause an economic recession.
The mix of rising interest
rates has led to some uncertainty
but the continued economic growth
has the commercial market on solid
ground,” said Yun.
Commercial real estate prices are
forecasted to decrease in response to
the 93 percent price gains the market
has experienced over the last 8
years. Low interest rates have pushed
Americans to invest in commercial
real estate as borrowing costs remain
low. Rising interest rates, however,
will make buyers less willing to pay
higher prices.
Yun made clear that he does not
expect a recession in 2019 as job
creation continues, unemployment
sits at 3.7 percent and consumer
confidence remains at its highest level
in over a decade.
Yun said that sales transactions
for commercial real estate are trending
upwards as the Realtor median
dollar value of property deals is over
$600,000. The median lease
value was $215,000 in 2017 as
multi-family constitutes nearly
50 percent of all commercial
investment transactions.
Rental growth is beginning
to taper at 3.6 percent and
vacancy rates are low across
the country. Retail sales are
growing, with e-commerce
increasing more than twice as
fast as traditional retail sales.
Office demand remains strong
due to rising employment
while net rental growth sits at
historic levels.
Dr. Snaith shared his outlook
and touched on tax reform, trade
policy and financial regulation.
“The economic recovery has
been historic in the last 10 years.
We are currently experiencing a
boost in government spending,
which directly grows gross
domestic product. Policies like
tax reform have led to profits,
in turn feeding investment
spending. Looking ahead,
regulatory relief is the special
sauce needed for the commercial
real estate market to thrive even
further,” said Snaith.
link
/www.TCGKona.com
link
/www.konacoastvacations.com
/www.konahomesandrentals.com
