Simmering trade disputes, volatility in equity markets and slowing growth are causes of concern for real estate investors, and there seems to be little consensus about how best to cope with these looming problems. Demand for commercial properties remains strong in Texas according to experts, but the market has cooled in recent months. These mixed signals have prompted many of the state's developers and investors to eschew speculative deals and remain loyal to conservative strategies that have served them well in the past.
Investors in Texas who have commercial real estate assets or who are considering investing in commercial real estate may be interested to know how to successfully navigate in an uncertain market. There are many factors that can create anxiety and uncertainty in the commercial real estate industry. However, taking certain steps to remain agile enough to respond quickly to unexpected changes can help investors avoid being left behind.
Commercial real estate in Houston and around the country can be a profitable investment, something that is reflected in the growing interest of high-net-worth investors in these projects. While commercial real estate projects have long been appealing for more local or smaller investors, a range of high-profile companies and individuals have become involved in an array of real estate ventures. Of course, urban real estate has long been an appealing investment, given the vast growth in value and the scope of many urban projects, which may be valued in the high millions of dollars.
Investors and others who are involved in Texas commercial real estate may have heard about the disruptive potential of blockchain. For instance, blockchain may bring about the advent of the smart contract. Smart contracts tend to allow for greater transparency between parties in a deal, which can increase trust between those parties. It may also result in the deed to a property being transferred immediately after the contract's conditions are met.
Commercial real estate investors in Texas may find that artificial intelligence technologies will begin to have an impact on the industry as a whole. The residential real estate market is already seeing some effects from the use of bots to respond to inquiries as well as algorithms that seek out potential homes for interested buyers. However, on the commercial side of the market, the greatest potential for AI may be found in easing and transforming transactions. AI principles may allow investors to better understand the opportunity presented by a particular potential transaction.
The ongoing partial government shutdown is negatively impacting the commercial real estate sector in Texas and across the U.S. Multiple federal agencies and government contractors play an important role within the industry. When they are not at work or are greatly short-staffed during the shutdown, their absence can harm commercial real estate businesses.
For many people interested in branching out to expand their investment interests in the Houston area, commercial real estate can provide important opportunities. Initially, it can be confusing to many people new to the industry as documents about real estate investments can be laden with jargon. The sums of money involved in a project can be substantial, especially for major commercial developments. However, there are a number of ways for people to enter the market and benefit from the opportunities provided; these types of investments are well-known for providing a stable home for funds and protection from volatility in the stock market as well as significant potential for profit.
The details of a commercial real estate transaction can vary depending on the type of property purchased. For instance, the due diligence process for an industrial building may differ from the process surrounding the purchase of a multifamily home. How long it takes to complete may depend on where the property is located. Therefore, if the property is located in Texas, a buyer should look up permit and other requirements needed when evaluating a potential purchase.
There were over 53,000 personal injury cases filed throughout Texas and the rest of the United States in 2017. While this is down from more than 76,000 in 2014, it is still important for property owners to take steps to prepare for a possible legal claim. In some cases, property owners are named as defendants in premises liability cases even if they weren't the ones who caused the accident to happen.
Potential investors in Texas may be particularly interested in the commercial real estate market, especially as the National Association of Realtors reported that the industry had grown over the past year. In its 2018 report, NAR said that its members who dealt with the market had reported increased sales volume and gross income. The survey included real estate agents who focus their business on commercial projects, including sales, leasing and land development in office, industrial, retail and multifamily spaces.