We hate to blow the horn every time we hear a story about the market getting better, but a new survey by the National Association of Realtors found that 58 percent of real estate professionals felt the commercial market would improve in 2014 is nothing to sneeze at. These results coincide with the returning confidence in other real estate markets as well. The National Association of Home Builders and Wells Fargo recently released its Housing Market index for May, which showed increased resilience in the residential housing sector. The index figure rose three points to a reading of 44 during the first half of May. A reading of above 50 indicates that more developers believe conditions will improve during the next few months.
Despite the increased confidence, the commercial real estate remains dependent on the rest of the economy to see sustained growth. Without job creation and additional expansion by organizations, there will be little demand for new facilities.
“We are not rebounding from the recent swoon,” Jacob Oubina, an economist at RBC Capital Markets, told Reuters. “We are just muddling along.”
So, what does this mean for you? Well, you will need to continue to focus on improving day-to-day operations and tenant service (got to keep those tenants in the building!) Boosting the productivity of your team will help cut costs and allow you deliver additional (and exceptional) service. If you haven’t already, now is the time to take advantage of new technologies, including property management software, that can give you that extra boost and streamline communication, improve service delivery, automate work orders and monitor employee performance.