Commercial real estate recovery could indicate metro's strengthening economy
Living in a metro with a strong economy is an important factor for many potential homebuyers. Cities with a low unemployment rate and a larger number of new businesses are tempting relocation destinations for workers looking for a better professional life. Consider purchasing real estate in Richmond to take advantage of the positive economic situation found there.
According to the United States Department of Labor, the unemployment rate in Richmond was 6.4 percent in August 2012 - down from 6.7 percent the previous month. The decrease in the unemployment rate brought the metro's civilian labor force up to 679,000.
New business enters Richmond area
New industry entering the market indicates a strengthening economy. Richmond BizSense reports that numerous companies are set to move into the area, which could increase employment levels and the fiscal security of many residents.
For example, Guardian Electronics and Wireless recently leased 1,480 square feet of retail space at 714 North Sheppard Street in the Museum District. While this is a smaller location, the predicted success of the new location could prompt future growth. The news source claims that another wireless telephone supplier recently moved into the area - Verizon Wireless leased 19,104 square feet at 4101 Cox Road.
National commercial real estate figures point toward economic recovery
The commercial real estate market is showing marked improvements. According to a report released by PwC US and the Urban Land Institute titled "Emerging Trends in Real Estate 2013," modest gains in leasing, rents and prices across the nation show marked improvements in the commercial property sector.
Despite the lower-than-normal real estate recovery predicted by market experts, the commercial property market is showing growth and leading to increases in job creation and metros' gross domestic product.
"With the outlook for commercial real estate continuing to improve in 2013, investors are expected to allocate substantial sums of capital to the real estate asset class, according to our survey respondents," said Mitch Roschelle, U.S. real estate advisory practice leader at PwC. "As yield in bonds and other financial instruments tighten in a still volatile market, commercial real estate's income producing and total return attributes offer investors potentially attractive risk-adjusted returns."
Professionals looking to move into an improving market may find Richmond to be the ideal relocation destination.