Industry insights, market outlook reports and commercial real estate
news, and trends from the Coldwell
Banker Commercial brand.
Sustainability is not only a trend that prompts action in multiple facets of the commercial real estate field but also drives and changes the landscape. Investors are paying more attention to sustainability standards for companies and choosing more sustainable properties in various ways.
Every industry has its own lingo, but there are some fields that really have a lot of jargon – and commercial real estate is definitely one of those fields. If you don’t have a background in CRE or CRE experience, it’s easy to feel overwhelmed.
For years, modern and flexible office spaces were the stomping grounds of small, boutique startups and the self-employed creative types. And, while those groups still play a large role in the market, larger and more traditional companies are now beginning to see the benefits of flexible office spaces.
It seems that everywhere you look today, avoiding hearing or reading stories about Millennials is almost impossible. We have all heard they are making huge strides and taking the lead in business, politics, real estate, philanthropy, and more. But what you might not have heard yet is that Millennials are even shaping your grocery store.
It has been said that it is only a matter of time before blockchain, the proprietary technology that supports cryptocurrencies such as Bitcoin, will begin to infiltrate industries worldwide. Believe it or not, even historically traditional industries are not immune to the disruption – commercial real estate included.
Lost in the headlines about Amazon acquiring hundreds of Whole Foods stores last year was the company’s announcement of a big search for a new second headquarters – although everyone in CRE was paying attention.
Reuters reported at the end of last year's third quarter that the office vacancy rate had remained flat at around 16% for three straight quarters. Experts have predicted that the office market will continue to remain generally flat throughout 2018. Yet despite those numbers, some cities are really thriving.
Fallout from the housing collapse a decade ago resulted in a surge in the renter population–outpacing homeownership for the first time in history. It also marked a return to cities where more walkability with access to public transportation offered a much more affordable lifestyle.
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 will generate over $2.5 billion in revenue.
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.