Industry insights, market outlook reports and commercial real estate
news, and trends from the Coldwell
Banker Commercial brand.
As the future of transportation and city development changes rapidly, developers are reevaluating the demand for parking in retail, office, and multi-tenant spaces. The lack of ample parking has been a reality for people living and working in densely populated areas like San Francisco and New York City.
The landscape of the real estate market is changing by leaps and bounds. Over the past couple of 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 why secondary markets look so much more attractive to investors this year.
With the internet becoming a part of almost everyone’s daily lives, it has quickly become a great resource for helping develop and facilitate the sharing economy. Three ways we currently see this economy are in transportation, vacation rentals, and office sharing.
Recently, the National Association of Realtors (NAR) released its report on the commercial real estate trends for the international side of the business. It is no secret to those involved in the commercial real estate sector that global investment in the United States has been growing over the last few years.
Everything old is new again. This even pertains to shipping containers, some 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 office space, with trendy office denizens putting them inside the building as individual offices.
Sam Zell recently stated: “The real estate cycle is nearing its end” (Pensions & Investments, May 1, 2017). We must admit that Sam had great timing when he sold his Equity Office REIT to Blackstone in 2007 which was the peak of the last cycle.
With cities and urban areas attracting more people and an increasing population in primary towns and secondary cities, the population in these areas is also creating a highly skilled employee pool for potential employers.
It should be no secret that foreign investment has been a large source of overall investments in the American commercial real estate market. This can be a testament to the strength and favorable returns that can be found in the U.S. market.
Going green is more than just a trend now but what options there are to go green has seen incredible changes throughout the last few years. While small changes can help your lifestyle to be greener there are large changes as well that can be made not only by individuals in their lives but also large companies and developers.