Demand for office space to remain strong through 2014

According to a research report sponsored by the National Association of Realtors in late 2006, the demand for office space in Orlando is expected to remain high for the forseeable future based on increasing and projected job growth numbers.

The report also indicates New York City and Southern California lead the nation with the lowest office vacancy rates while Dallas holds the title for highest vacancy currently at 22%. The current national average vacancy for office buildings is at approximatley 13%.

Foreign Appetite For US Commercial Real Estate Continues to Grow

Despite potentially higher yields in countries like India and China, foreign countries invested approximately $20 billion dollars in large commercial properties in the United States according to Real Capital Analytics, a New York City based research firm. According to the report the top five foreing investors in order of invested capital were The Middle East, Australia, The Pacific Rim, Canada and Germany.

Because of its diversied market, commercial real estate in the United States is still considered to be one of the safest investment while still providing the opportunity for capital appreciation.

Rising insurance costs hurting small businesses

Rising property insurance rates make it difficut for small business to compete in the marketplace. The increased cost for insurance is eating away at such crucial business development activities such as advertising and marketing.

It's a trend that’s challenging many local businesses that own their own real estate: Rising prices for property insurance are pushing up the cost for doing business. The state’s new insurance law promises some relief for these commercial property owners – but not nearly as much as it does for homeowners. What’s more, some experts wonder whether the new law might hurt Florida businesses by exposing the entire state economy to more risk.