Commercial real estate attorneys should understand the financial risks associated with potential transactions and anticipate market trends in order to help their clients make well-informed investment decisions. As such, while no one can predict the future, economic forecasting is an essential part of any commercial real estate practice.
Forecasting in the context of commercial real estate involves an analysis of various economic factors, like interest rates, inflation, unemployment rates, and consumer spending, in order to gauge the overall health and direction of the economy. These factors impact the demand for commercial space, influencing occupancy rates, rental rates, and property values.
Economic forecasting also helps parties involved in commercial real estate transactions to manage risk. By anticipating potential downturns or market fluctuations, investors and developers can devise contingency plans and strategies to mitigate the effect of adverse economic events. External factors like geopolitical events, technological breakthroughs, and unforeseen natural disasters can present significant challenges with regard to economic forecasting, however.
In today’s commercial real estate environment, economic forecasting is both more important and more difficult than ever before. Fortunately, the MSBA provides its members with access to seasoned experts who can offer valuable insight into market trends and the direction of the economy. On November 13, 2013, Brian Gould, Managing Director on the Berkadia mortgage banking platform in Washington, D.C., will present Economic Forecasting, discussing foreseeable interest rates, lending patterns, and other financial issues impacting the commercial real estate sector. Gould arranges loans and JV Equity for commercial real estate owners and developers on various property types, including multifamily, single-family rental, industrial, retail, office, self-storage, and more.
The Economic Forecasting seminar will be one of several programs presented during the Advanced Real Property Institute as part of the MSBA’s Legal Excellence Week. As noted by Taggart B. Hutchinson of Miller, Miller & Canby, one of the Real Property Institute chairs, “MSBA’s annual Advanced Real Property Institute should be a can’t-miss event for every Maryland real estate attorney. This year’s speakers include industry experts and seasoned practitioners from both the private and public sectors, with insights to help you guide your clients through a changing and challenging economy.”