What will the future of 2011 and beyond look like?  Many economists believe the next 12-18 months will be a period of slow economic growth and high unemployment.  I have heard the term the "New Normal" which suggests a reversion to a pre-2004 market, which was a period of time prior to my entering the commercial real estate brokerage business.  This was a period where terms like non-recourse financing and spec lending was rare.

Research is showing that there are some reasons for optimism going forward.  Nationally, there are fewer layoffs and some signs of job growth.  Should we see a turn-around, there is a large pool of skilled workers available to be rehired quickly.  Other reasons for cautious optimism are record high corporate profits, thus an enormous amount of available funds for reinvestment, and low interest rates, encouraging business expansion.  Lastly, quality commercial real estate still provides a hedge against inflation and better returns than treasuries and bank deposit instruments. 

However, huge levels of uncertainty exist in the business community.  I see everyday a strong hesitation by buyers and tenants to move forward with expansion even though super opportunities exist.  Small business worries also are compounded by new regulations in banking policies and health care reform leaving small business owners concerned about increased expenses.  Finally, the market is still experiencing high bankruptcy rates, slow mortgage pay, as well as tenant requests for both reductions and renegotiations in rent.

Now more than ever it is important to have a trusted advisor helping you make decisions providing real market data, sound advice and a compliment of other professionals like attorneys, CPA's architects and contractors.  Understanding current market pricing, possible incentives and creative deal-making options is very important in our current market.  These are principles I have begun to build my company on.