If you are currently considering purchasing industrial space, or leasing industrial space, you might consider reading this article before you do. The upcoming General Election in November is going to affect the industrial and commercial real estate market, and how it affects it will have an effect on you.
We are RDS Real Estate, serving the Greater Fort Worth area with over three million square feet of industrial property for rent and commercial property for lease. Call us at 817-439-3224 for more information.
Now, let’s talk about that upcoming election.
The industrial space market is directly affected by elections.
There is no denying that there are effects caused by important elections. To what extent those elections cause your local real estate market is a matter of conjecture. There are historical trends we can see and draw conclusions from, but every election is different, and the state of the market prior to the election is different as well.
What we can tell you is that there is usually a “wait and see” grace period immediately after an election, a calming period while lending institutions decide how to ride the wave of the elections. The stock market generally has a knee-jerk reaction to elections and then resumes normality, and that knee-jerk reaction can happen within days of a national election.
Short term and long-term effects.
Let’s look at the summation recently posted by J.P. Morgan regarding the upcoming election.
This from J.P. Morgan regarding upcoming elections:
- The results of the upcoming election cycle will influence fiscal and regulatory policies affecting commercial property for rent, and sale.
- Because of legislators’ role in spending, the outcomes of Congressional contests are also important to consider.
- The results of local elections may be even more impactful, as they can influence city and state policies, such as zoning, tax incentives and building permits.
- Historically, the markets respond to the macroeconomic landscape, rather than the election itself.
- If either of the major political parties secures control of both Congress and the presidency, the administration could make sweeping changes. But under divided government, policies and spending that impact multifamily and commercial property for lease, and sale, could face political gridlock.
What does this mean to you?
Regarding leasing property or purchasing property, look at historical precedents of past elections and how they affected your local market. The price of industrial space and commercial property for rent will more likely be affected by the forces of supply and demand rather than the election outcome, especially if Congress is split between the two parties.
Look back and see how your area reacted to previous elections. The clue about future action might be found there, but the more important factor will be your local market, the health of that market, and the need for properties in that market.
A final word about RDS Real Estate.
RDS Real Estate is locally owned and operated. Call us for all of your real estate leasing needs i.e. warehouse for rent, shop for rent, retail space for lease, garage for rent, et al.