What factors may impact the commercial real estate market?

What factors may impact the commercial real estate market?

On Behalf of | Oct 11, 2022 | Business And Commercial Law, Commercial Real Estate |

Commercial real estate is quite different from residential real estate. The uses and even buyers in each market are quite different. Agendas and goals are not the same for buyers of commercial properties and residential properties.

These differences can impact the market, but there are also factors that will shape the market that impacts both residential and commercial real estate.


When inflation is hitting the economy heavily, it will impact all real estate. Your buying power goes down. You can afford less than you could before. Higher-priced properties will sit on the market because they are unaffordable. In addition, if you have to find financing, it will be harder. You may struggle with high-interest rates or even getting approval for as much as you need since it is inflated due to the economy.


One good thing when the market is not stable is demand goes down. People stop buying. So, if you have the financial backing, you might be able to get the best deals or grab up a property that usually would have stiff competition. You also have more of an ability to negotiate because there are fewer other buyers.


With inflation, prices will soar. The dollar does not go as far. So, if you are looking to rent, you can expect to pay much more per month for far less real estate. This could have a huge impact on your bottom line. If you can get financing, it may be best to go ahead and look into buying instead. But, of course, that will depend on your situation. But it is worth considering when the market is volatile.