Industry insights, market outlook reports and commercial real estate
news, and trends from the Coldwell
Banker Commercial brand.
Augmented Reality and Artificial Intelligence (AR and AI) may still be far from standard in CRE, but it’s only a matter of time. High end firms have already been using these tech tools on a grand scale. Research by Goldman Sachs estimates that by 2025, virtual reality (VR) technology alone will generate over $2.5 billion in revenue. Change is happening now and could hit sooner than many of us believe, leaving some CRE pros behind and pushing others to the forefront.
Investing in real estate can be a way to earn passive income and increase your wealth. While plenty of investors have success in residential real estate, others make a move to commercial real estate to gain even more money.
As the future of transportation and city development changes at such a rapid rate, developers are reevaluating the demand for parking in retail, office, and multi-tenant spaces. For people living and working in densely populated areas like San Francisco and New York City, the lack of ample parking has been a reality for some time. But for much of the country, scaled back parking ratios could take some getting used to.
The landscape of the real estate market is changing by leaps and bounds. Over the past couple years we’ve seen a lot of changes in commercial real estate, from shopping malls across the country abruptly closing down to millennials leaving their suburban communities and flocking to urban centers en masse.
Last year, core assets were ranked second highest among investors. This year, secondary metros took that spot. Some argue that the cap rates for core assets and investors looking for assets that produce higher yields are the reason why secondary markets are looking so much more attractive to investors this year. But if you look closely, there are 4 macro reasons why investors are shifting monies and setting their sights on secondary metros.
With the internet becoming a part of almost everyone’s daily lives and getting the world more connected than ever, it has quickly become a great resource to help develop the sharing economy and facilitate that sharing to occur. If you are not familiar with the sharing economy, it is the idea that something you own is shared with another individual or that you share something that another individual owns.
Everything old is new again. This even pertains to shipping containers, some of the older of which are being transformed into homes as part of what’s known as the container home trend. This trend is also spreading to multifamily and even office space, with trendy office denizens putting them inside the building as individual offices.
With cities and urban areas attracting more people and an increasing population not only in primary cities but also in secondary cities, the population in these areas is also creating a highly skilled employee pool for potential employers. Due to this some companies are either expanding and putting new offices in these cities or they are moving their company to these cities to benefit from the pool of skilled workers.