The real estate industry can be a stable industry to invest in, even during economic recessions. Brevard County made the list of the top 10 best performing metropolitan areas because of the multitude of opportunities in both manufacturing and high-tech industries. The Commercial Real Estate industry contributed $1.14 trillion to the national GDP in 2019 and real estate offers long-term investment growth, measured by YOY growth rates.
Year-over-year growth rates take the statistics for one month or quarter and compare them to results from the previous month or quarter. Year-over-year growth rates are a good measurement for commercial real estate growth because it eliminates factors like seasonal changes. Many businesses experience growth in seasons. Some parts of the calendar year may traditionally be busier than others. When you compare the same month or quarter year to year you can confirm growth, stagnancy, or a decrease in company income.
It’s important to note, you may not see the same increase you’re used to during a recession. YOY growth can highlight that a 2% increase this year isn’t as good as the 3% increases you had in years past. While it can be a great measurement for company growth, YOY reveals trends, and it’s best when used with other metrics to show comprehensive growth.
Real estate is a strong industry and in Inc.’s annual ranking of the top Florida businesses, about one-third of the top 10 businesses were in real estate. Companies in this list are ranked according to their percentage revenue growth from 2016 to 2018. The Space Coast is home to growing industries in defense and aerospace, but it also offers numerous real estate opportunities. Real estate can be less vulnerable to recessions as other industries, like aerospace and defense, and can offer stability during economic uncertainties. Real estate can be a reliable source of income for investors and it provides Brevard County with a diverse economy.
Is it time for you to diversify your real estate portfolio? Give Ullian Realty a call. We understand how to evaluate how YOY rates will impact different Brevard County Florida businesses because we live and work in the community.
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