Commercial Property Issues: 5 Things You Should Be Aware Of

Commercial Property Issues 5 Things You Should Be Aware OfThere are a seemingly endless list of of things you have to be aware of in order to successfully navigate today’s commercial property market. Those issues vary based upon the details of the commercial property involved, but here are five things you should probably be aware of no matter what kind of commercial property you have.

Rising Rates

The prevalence of low interest and capitalization rates for last five years or so has been a great boon to the market. However, when it comes to interest rates, what goes down must eventually go up. Many observers feel rising rates are long overdue. If so, they could create a much more challenging market.

Unpredictable Crises

Even when you cover every angle, unpredictable events such as economic crises and political upheavals can radically alter the marketplace. There is no way to predict these calamities, but it makes sense to be on guard by doing such things as keeping your insurance up to date.


Not all threats to your commercial property investments come from big global and economic disasters. Some risk comes in pretty mundane forms, like a lack of basic security that results in crime and property damage that might otherwise be avoided. Proper lighting, hiring security personall and even installing a security fence from Warefence can save you money in the long run.


It is not certain what the demand for commercial property will be in the face of societal trends. Will people be working at home more in the future instead of in offices? Maybe, but some studies suggest that people are more productive if they leave home to go to a specific place to work. How that issue plays out will have an impact on the market.


Closely tied to lifestyle changes is technology. Machines influence how commercial activity is carried out and will have a major influence on how much office space will be needed in the future. Automation tends to reduce the need for workers, thereby reducing the need for commercial property. However, sometimes technology creates completely new businesses that will need commercial real estate to house them.

The issues facing the commercial property owner are forever in flux. If anything, the commercial property market is likely to become even more unpredictable. However, by keeping your focus on interest rates, unpredictable changes in lifestyle and technology and basic safety issues, you should be able to keep on top of the market and roll with the trends.

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