When is a good time to rent retail space for rent?
Every four years, as the general election for President approaches, we are asked how the election is going to affect the retail space for rent prices and availability of industrial and commercial property for rent.
It is a fair question, and we understand why people are concerned with a major election on the near horizon, so let’s tackle it here in this article by RDS Real Estate, leading the way in the Fort Worth Metro area with affordable industrial space and commercial property for lease. Call us at 817-439-3224 for more information.
So, how will the election affect rentals? When then, is the best time to rent retail space for lease?
Purchasing rather than renting.
Most of the action, affected by general elections, in commercial real estate happens with the purchasing of commercial properties. Investors are affected by the general mood of the country as an election approaches, and immediately after the election, and that leads to either an uptick in purchases of properties, or the construction of new properties. This uptick can also be directly affected by any change in the prime rate; if the prime rate is lowered, more construction will happen because of “cheaper” loans for construction.
As for renting/leasing said properties, the election will have very little affect unless a loan is needed for the initial year of operation. The initial cost of opening a retail business can be pricey i.e. purchasing furniture, purchasing inventory, etc., and this may lead to taking out a loan for those items. That loan, then, will be dependent upon the lending rate. But, the actual cost of renting properties, that cost/price is more affected by supply and demand within any city. A surplus of rental properties will generally mean lower prices; a shortage of rental properties will generally mean higher prices.
Rent with confidence depending upon that prime rate.
This article is being written in September 2024; word of a prime rate decrease is in the news, with another decrease rumored for November. If that is true, there will be a large influx of new properties being built to meet the rising demand in cities like Fort Worth. It is our opinion that this is a great time to rent commercial property, and that positive outlook will spread into 2025 as well.
What’s that old saying? Strike while the fire is hot? The fire in industrial and commercial real estate is hot right now, and about to get hotter, and our suggestion is to go ahead with your plans to rent retail space for rent.
A final word about RDS Real Estate.
RDS Real Estate is locally owned and operated with over three million square feet of prime industrial and commercial property for rent. From retail space for lease to office space for lease to a loft for rent to flex space for rent, we have it all in all quadrants of the Fort Worth Metro area. Call us today, speak to a leasing agent, and arrange to see some of our properties. Whatever it is you need, we have it at RDS Real Estate.