The recession that began in 2008 hit real estate hard in Ohio and across the entire country. Commercial real estate vacancies increased and construction and rental rates fell. Finally, industry observers are projecting a recovery in all three areas.
Colliers International is a global monitoring organization that makes a wide variety of market projections every quarter. Its third-quarter 2015 retail market report included projections for the fourth quarter that indicate improvement is on its way to the Cleveland metropolitan area. These projections include a brighter outlook for construction, which is an area that was flat during the third quarter.
The Cleveland market report covers 18 counties in northern Ohio. In this region, employment is growing, and that growth is expected to continue for at least 10 years. With steady employment growth comes real estate growth, as expanding companies need more space for more workers.
According to the report, the vacancy rate decreased in the third quarter, and projections show year-end data are expected to reflect a further decrease. Conversely, but just as important, the rental rate, which is the average cost for renting a square foot of space, was on the rise in the third quarter. It was expected to go higher during the fourth quarter.
As the commercial real estate market regains traction in northern Ohio, more business owners will be negotiating leases, rental agreements and other real estate-related contracts. Many of them will turn to experienced attorneys for guidance before signing any documents. With the help of knowledgeable legal professionals, these business owners know they can confidently expand their businesses.