Booming Commercial Growth in California
It seems that there is a good sign in the commercial construction in California along with residential growth. With the improvement in the economy, now the commercial real estate companies are becoming increasingly optimistic about the new business opportunities opening in California and hence earning more profits over the next three years. The market experts are saying that there are strong signs that the commercial real estate market will now start growing steadily for the next three years but then it would slow down after 2016 or 2017. However, the growth will be steady yet it will be slower in rate.
According to reports in various business journals, California is now fifth among the US states in the field of commercial construction especially in the construction of industrial warehouse, offices and retail spaces.
The signs are still positive though it is a bit slow. The commercial real estate agents are however still seeing a cool down in the commercial marketplace but now they are thinking that there will be improvements in various commercial real estate fields. The office markets are expecting that the vacancy rate would drop to 15.6 percent after the first quarter of next year. In fact, in Nashville, San Francisco and Tennessee the vacancy had dropped down to 12.8%. The office rental rates are also expected to climb by 2.3 percent this year and it would climb to 3.2% in the next year.
What are the Industrial Market’s Growth and Retail Industry Saying?
The industrial markets in California are showing vast improvements. The vacancy rate in Orange County, California, has dropped to 3.7percent. Los Angeles comes to a close second with the vacancy rate dropping to 3.8 percent. Miami has the vacancy rate of 5.8 percent and Seattle has it at 5.9 percent. The vacancy rate is still higher at San Riverside and San Bernardino. In both these cities the vacancy rate is 6.1%.
The industrial rental rates are expected to rise by 2.4% in 2014 and it will increase by additional 2.6 percent in the year 2015. The retail markets are also showing signs of improvement. In San Francisco, the vacancy rates are down by 3.1% and in San Jose it is at 5.2%. Both Northern New Jersey and Orange County in California have the vacancy rate dropped to 5.3%.
What does the Job Market Reveal?
The data from the job market shows that though the highway works are slowly paced, yet the construction workers are getting ample job opportunities in the construction of big offices and apartments in the larger cities such a Los Angeles. Every large city is seeing influx of private money into construction business thus building mega multi-use projects. In fact, according to reports Los Angeles and Riverside metros are offering the highest number of commercial construction related job opportunities. Since 2009, the data of this year shows huge improvement in the job scenario of those who are into commercial construction.