Commercial real estate business, though have fulfilled many people’s dreams but at the same time it’s very tricky and a lot of knowledge and research always requires making good decisions. These are many factors which the investors compare and go through thoughts given by the experts before making bid decisions. In short, they need to be up to date with the new trends in the industry and get ready about the possibilities in near future so that they can keep their wealth safe and never miss a chance to increase it. In this article, you will get to about few trends which are going to affect the commercial real estate world in the near future.
Office BuildingsOffices have been a very much essential part of the commercial real estate business. The demand of office setups for new modern start ups or tradition type of company set up etc has been continuously increasing.
In regards with office construction, year 2018 has been extraordinary as 60% of the office constructions got leased just after getting constructed. More number of offices got constructed in the first two quarters in 2018, than the same period in 2017 in the USA.
If we go with the experts , the zoning related problems, the problems related the real estate cycle or the increase in the cost required for construction are few factors which are pulling back the developers from working on the new projects. Hence the year 2019 is being predicted to be less lucky than the previous year for the investors in office spaces. The new office space may go 18% less than the previous year. Thus investing in office spaces may not be as fruitful as it’s been in the past.
E-Commerce EffectThough online shopping came into existence long back but in the beginning it was preferred mostly for the international level shopping, but gradually due the factors like computer literacy for everyone, smart phones, development in IT industry and availability of internet have made ecommerce very easy and popular. The online sale is rapidly leaving behind the traditional stores sales.
Investing In Storage Facilities And Warehouses Will Provide Good ReturnsIt seems that the traditional way of shopping is coming to an end but one point is obvious that even for online shopping some places to keep the goods safely is required .Hence people can invest in large scale warehouses and local storage facilities as this is definitely going to yield great returns as the online shopping is not going to turn back .The more will the online shopping increase, the more will increase the requirement of the storage points. Now a day many small online stores are also emerging in big numbers and most of these people are just not having a shop or a place to sell but the online shopping concept has made their job easy as they done need to sit on a shop and the same time they can keep advertising the products online. They just need the storage places to keep the things and pick them to give it to the delivery boys. This type of requirement is going to increase by the time and the low level investors can give a try in it.
Grocery Stores Are Still FruitfulThough everything is available online including grocery but still grocery is not so much in demand online as many people want to buy the local things and they need to sometimes touch, smell and even taste a bit before buying the grocery items and grocery stores will still keep yielding returns as per today’s trend. Take your attention ones to your home and see how much grocery has come from online market. Also think if your neighbors or relatives buy it online and you will get the understanding of the possibility. Whatever the data says, but this can be concluded by experience.
Importance Of VisualsYou would have seen listings of many very costly houses with a blur picture taken by a mobile camera. Has it irritated you? Have you wished to have a better view in the picture? I know! The answer is yes but when we enter a listing, we somehow do not take it seriously. Most of the people working in real estate think that people are just concerned about the data. The myth is that people just want to see the floor space, location, number of rooms, the taxes to be paid, the surroundings, the price and they just make the decision on basis of these. On the contrary, the reality is different. The viewers spend more than 50% of their time spent on a property page in viewing just the pictures. If the pictures will be good and professionally taken, it will leave imprints on the visitors’ mind unknowingly for a long time. Attractive pictures give you a chance to increase the price by 7% and experts say that it gets sold in that price if the pictures are really good.
Hence the conclusion is one can surely grow the business a lot just by concentrating of good pictures. This way the deals will crack faster and one will get more time to find and sell more properties.
Industry Will Become More TechnicalPeople in commercial real estate business have started using the tools and techniques to do the job faster. One who will adopt more new ways will win the race. Hence the use of technique is also a new trend.
Workforce HousingDemand for the affordable housing in the major cities for the working people is going keep increasing even this year as per the experts.
Possibilities In Suburban AreasNow people are moving to suburban areas and to fulfill the demands from the increasing population, here also the housing for these people and also the retail stores requirement etc is increasing.
Hence, many trends can be mentioned, but we have just mentioned few important trends, which may help you to understand the future of the industry in the coming year. Last but not the least, the hospitality industry is also going to boom and this can yield good returns if one invests in it.