Guide to Commercial Real Estate Market Research

Before investing in commercial real estate, take advantage of the many methods of property market research and analysis currently available to the public.

On a daily basis, property market research companies record financial data from the sales of commercial real estate, the number of permits awarded for new commercial construction and the analysis of publicly traded companies on the stock market. The data is analyzed in order to forecast trends and predict future markets.

Commercial real estate market research is available for private investment ventures as well as Real Estate Investment Trusts (REITs) that are registered with the Securities and Exchange Commission.

If you’re involved in any business impacted by the sale or acquisition of commercial real estate, make it a daily practice to check the current trends. The key points of interest in commercial market research include:

1. Determining the local, state and national acquisition numbers.
2. Monitoring new construction in the commercial real estate industry.
3. Analyzing the specific markets in commercial real estate investment.

Action Steps
The best contacts and resources to help you get it done

Watch the figures - they don't lie

However, they can represent a one-sided analysis in market trends for personal or political agendas. Hence, the need to access raw documentation and unbiased reports from companies that don't stand to profit from dissemination of the information is crucial. Stick with well-respected real estate research consultants, and even then, realize that commercial real estate market analysis is an art, and market consultants often disagree.

I recommend: Coldwell Banker Commercial offers a State-by-State searchable market summary where you can read the latest quarterly trends in real estate. In addition, register to receive their free Viewpoint Newsletter delivered to your email inbox. ReBuz offers access to commercial real estate market consultants, most of which charge a fee for their services.

Navigate apartment property market research investment opportunities

Traditionally, as interest rates rise, home buying slows and apartment rental increases. The ability to forecast this trend before other investors tie up commercial multi-housing real estate property is the key to making a wise investment. Alternately, as interest rates drop, apartment investors are more likely to accept a lower offer on their commercial real estate. In either market, you can benefit as an investor if you have access to the needed data.

I recommend: Pierce Eislen offers commercial real estate market analysis online for the major apartment markets in the United States. In addition, keep track of current commercial real estate projects around the nation. Study the latest apartment market reports from Marcus & Millichap.

Study the market before investing in an office building REIT

Property market research will help you locate the hottest business markets and avoid office complexes slipping towards a bear market slowdown. Follow financial growth indicators for more information before investing.

I recommend: Visit Quirk’s Researcher SourceBook for comprehensive information on market research companies. Selectory offers a 7-day free trial for access to business in the US and Canada. Register free at LoopNet to locate commercial real estate listings.

Tips & Tactics
Helpful advice for making the most of this Guide

• Don't forget about your local community. Having your finger on the pulse of business trends locally can provide investor information.

The official source of Commercial Real Estate Market Research is
the Commercial Real Estate Market Research page at Business.com