We live in a very globalized and interconnected world. Given this, events that happen in one country can not only have impacts within that country’s borders, but also in many other countries. Among the things events in one country can have the potential to have ramifications for in other countries are commercial real estate markets.
So, price levels and other aspects of the various regional commercial real estate markets here in the U.S. can not only be influenced by local and national conditions, but also international conditions.
Given this, in the wake of the U.K.’s recent vote to leave the European Union, among the questions that have come up here in the U.S. is: how big of an impact will the Brexit have on commercial real estate markets in America?
Among the things that the Brexit could potentially result in are international real estate investors being more likely to leave the U.K. market and changes in the overall investing situation and circumstances for U.K. investors who invest in real estate. These, in turn, could lead to things like non-U.K. markets getting more attention from international real estate investors and changes in U.K. investor behavior regarding international real estate investments. One could see how, depending on the circumstances, such things could have the potential to have effects on U.S. real estate markets.
Experts are currently divided on what level of impact U.S. commercial real estate markets will end up feeling from the Brexit. What ultimately ends up happening could be influenced by a range of different factors. It will be interesting to see what does in fact end up happening on this front in the months following the Brexit vote.
Real estate market conditions are not the only thing regarding commercial real estate here in the U.S. that can be complex and interconnected. Another such thing are legal issues related to transactions involving this type of real estate. These issues can end up touching on many different things for both the buyer and the seller, and what happens with one such issue could have significant implications for other such issues. So, giving legal matters proper attention can be very important when participating in commercial real estate transactions.
Source: National Real Estate Investor, “Brexit Could Bring More CRE Investors to U.S. Shores,” Diana Bell, June 24, 2016