Increase in real estate investments cause more legal needs

As the economy continues to grow, real estate investments are on the rise. While residential purchases have been on the upswing for some time, commercial property investments are now seeing rapid growth both in Illinois and the rest of the country.

According to a recent report, two-thirds of all commercial real estate investors intend to be net buyers in 2017. A net buyer is an investor who buys more properties than they sell. Additionally, 83 percent of investors intend to increase their purchasing activity even if they were already a net buyer.

While investors remain cautious about factors such as rising interest rates and the belief in some circles that real estate prices are currently in a bubble, they believe the positives outweigh the potential risks. This is especially true in what investors consider as U.S. gateway markets, which are large metropolitan areas with large concentrations of established businesses and easy access to other markets both within the United States and abroad. Some of the most popular gateway markets are Dallas/Fort Worth, Los Angeles and New York City.

Much of the new investments are expected to come from large institutional investors. More than half of the existing institutional investors are expected to invest at least $1 billion into U.S. commercial real estate markets within the coming years.

While investors have expressed some uncertainty about the repeal of some government regulations and potential new ones, they generally do not believe it will have a large impact on the commercial real estate market. However, even if investors don't believe investment values will be affected, it's still important they ensure they are in compliance with current real estate laws. Failing to do so could lead them to be subjected to government fines or costly litigation that could potentially erase any investment gains.

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