Tuesday, August 25, 2015

CRE Trends As We Begin To Wind Down 2015

2015 has been a banner year for commercial/investment real estate, with gains in sales over previous years.

Various markets worked themselves out of the Great Recession, and investors finally shook off their doubts about the still lackluster economy and plowed forward. With this move forward there seem to be four trends emerging that are worth watching:

1) Increased global investment in the U.S. market --

No surprise here. The United States is still a pretty safe place to invest. While prices are on the way up, depressed values attracted international buyers to all market segments. The Wall Street Journal predicts that the commercial real estate environment will continue to see increased global investments into US markets, thus propelling the strength of the US commercial real estate market. Very cool.

2) Increasingly competitive markets

Unlike decades past, urban cores are growing. Investors are funding new projects. Business owners have far more options regarding new vs. older properties. Being this selective, owners are being forced to provide high efficiency and increased effectiveness. Increased markets means savvy lessors can excel by providing specialized assistance to clients and by meeting more specific requests of an increasingly eclectic clientele.

3)  Urban divisions

Many millennials prefer housing that is located in developing urban core, including new, recently gentrified pockets. As such, demand for quality multifamily is skyrocketing in previously decaying urban areas. Gone are the days of focusing on an inner core of a community and having to branch from the outside in. Urban "pockets" are popping up everywhere, and are able to provide increased space for a far more eclectic clientele.

4) Retail bifurcation

Even in non-urban areas, an increase in bifurcation is continuing to build. Seeing retail shops of varying levels in the same area is becoming more prevalent and will only continue to be the norm. Filling spaces with high-end retail establishments paired with middle and lower end ones is becoming much more common and preferred. Property managers who keep this in mind will be able to keep spaces filled to capacity more quickly and consistently.


CRE is hot right now in most markets of the U.S. For an analysis of your market, and strategies to get you where you want to be via commercial/investment real estate investments, drop me a line!

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