Many issues could stunt CRE recovery

Foreclosures could hurt the commercial real estate market.

Property management companies may want to keep an eye on a series of issues that could affect the commercial real estate market this summer, according to a report from CoStar.

Many industry experts are concerned about trends in the market that could cause an interruption in recovery. Much of the issues addressed revolved around government intervention in the market, the report explained. The large problems developing around foreclosures completed by Freddie Mac and Fannie Mae have made many feel uneasy. Furthermore, a large portion of those in the industry are concerned about the continued economic stagnation, which could put-off a full recovery for longer.

"CRE depends on a healthy and growing economy," David Zier, principal of Melvin Mark Cos, told CoStar. "The economy grows when private sector business can make a profit, and expand. The huge burdens of taxes and regulations that have been put in place or threatened for 2013 clearly have dampened private sector growth the last three years."

The report added that the country's real estate market could also be affected by foreign issues, as the eurozone economic crisis could prevent some overseas investors from purchasing American interests for the foreseeable future.

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