Many factors contribute to commercial real estate vacancies

On Behalf of | Dec 27, 2018 | Commercial Real Estate

The economy in the United States, including in New York, is cooling off at the moment. For this reason, investors may start to see more vacant properties available for purchase. A couple major factors contribute to the creation of vacant commercial real estate properties in particular.

First, vacancies often occur when mergers and acquisitions — or M&As — happen. During an M&A, where the seller and the buyer usually operate in the same field, the two companies can easily switch to using just one of the two companies’ buildings. The second building can then be sold as a vacant property.

A vacancy can also develop if a company sells its larger space to rent out a smaller one. A small rental space is handy in that the rent is cheap compared with a larger space. Automation, lift trucks and higher racks are just a few solutions that are increasing businesses’ abilities to operate in smaller spaces. In addition, logistics experts can help business owners to make the most of smaller spaces.

As more vacant commercial real estate properties potentially come available in the new year, now may be an ideal time for investors to seek out potentially lucrative buys. Of course, completing a real estate transaction can be a challenging process for those who have never been through it before. An attorney, however, can help an investor to approach the legal and financial aspects of such a transaction with confidence, making sure that the investor’s best interests are upheld before he or she signs on the dotted line in New York.