Commercial Real Estate market has seen vibrant changes in the past and is sure to display more changes in the days to come. The price of commercial properties depends on the business status of the place and most importantly the future of the business that is flourishing in that particular place. Lakeland is a place in Florida that is located right at the centre of the peninsula and is thus able to get all the geographical benefits which a place can have in fields of export and import business. On the other hand, not having any coastline makes the place less attractive to tourists. While talking about the revival of the Commercial Real Estate market in Lakeland area, it is evident that there has been a time when this particular sector in real estate business has seen bad times and is now gaining back the desired fortune.
In the very beginning we need to know the factors which might have been the cause of the destruction of the good times of commercial real estate business in this place and then we will move on to the revival factors.
Factors that might have been the cause of the destruction of the good times of commercial real estate business in Lakeland Florida:
The recession period: United States of America has been under great economic pressure for some time and there is hardly any business sector that has not been affected by its outcome. Commercial Real Estate business is completely dependent on the business organizations and when there is trouble in all those sectors, the result will obviously reflect in the real estate field. When several big business houses were facing serious financial troubles and were trying hard to bring down their running cost, the very first thing they chose were to curtail the budget of establishment (this included employee reduction as well as business space reduction) and this was where the real estate market got a hard hit.
Increase in virtual business opportunities: The rise in virtual business opportunities also opened the way for “zero establishment” and thus the necessity for having a huge shopping mall or market is seen to be reducing day by day. Most of the American citizens are now opting for online business and trading (not just for shopping but also for other serious transactions like banking) and thus necessity for spacious and well furnished office at the prime location in the city is reducing. When the task of a major bank branch can be done through the internet, even the nationalized banks will also go for less expensive offices at less expensive locations as in this virtual business world, the location and size of the office hardly matters.
These were the prime reasons of the downfall of the commercial real estate market in most parts of the country and Lakeland met the same fate as well. The real estate market in this part of the state of Florida was truly in danger as it lost the simple commercial ground and being a landlocked area, it is not a very attractive tourist destination as well. But this deficiency is pretty well handled with the presence of the huge number of lakes in this place and to be exact with the figures, there are 38 lakes in the area, which make this place, have the benefit of cheap water transport.
This area is one of the most financially beneficial one just because it has its own industries and most of which are never out of demand. The orchards and cattle rearing industry never ran out even during the hardest economic situations and having the benefits of cheap transport actually made the commercial real estate sector survive and now put strong steps towards rejuvenation.
The Revival Factors:
The first thing that must be mentioned regarding the revival of the Commercial Real Estate market in Lakeland is that Florida is the reason of the entire country’s economic revival. United States of America is now pretty stable and this factor is reflected in all sectors of business all over the country. Florida got back the export and import business and so did the necessity of space for business houses.
It is necessary to mention one important aspect of change in the commercial estate market in all the places across the country including Florida and that is nothing but astonishing downfall in demand for huge shops or malls. Real estate investors are now avoiding these buildings as most of the consumers prefer online transactions.
Still, the real estate market in Florida and especially the commercial sector is flourishing once again and that is pretty much because of these two factors. One, people engaged in this business are being able to make necessary alterations in their business and second, their investment approach which is actually the need of the hour.