Five Commercial Real Estate Trends
We’re already halfway through 2021! Since the world has drastically changed since the start of the pandemic, we want to make sure you are up-to-date with the current and future market. Here are five commercial real estate trends to watch for the rest of this year!
Population Decline in Major Cities
Over the past year, many companies decided to leave the traditional business areas such as New York City and Silicon Valley to find more affordable cities. As stated in our blog Why are Businesses are Moving to Florida, our state’s office sector is experiencing a surge in office investment because of the lower taxes and living costs. As the businesses start to migrate toward our area, we’ll see increased job opportunities and demand for office space. Now’s the time to invest in office space before larger corporations fully set up a base.
Large Suburban Migration
In correlation with population decline in metropolitan cities, suburban areas will have an influx of new residents and businesses. The suburbs provide resources and experiences that aren’t as accessible in larger cities, such as more space, affordability, better education and better connections with the community. According to Business Insider, Millennials and Gen-Z are leading the movement to live in suburban areas and are no longer looking to large cities for job opportunities. Since they are the next generation of working professionals, your business can capitalize on the movement as well.
Strong Demand for Industrial Properties
Due to the growth of e-commerce, the need for industrial properties has significantly increased over the last few years. People turned to online shopping to get what they needed during the pandemic, which led to higher demand in manufacturing and distribution facilities. According to the Commercial Property Executive, the industrial property sector reported $95.9 billion in investments at the end of 2020, which is the third-highest in the division’s history. Although life is slowly transitioning back to normal, this trend is not showing signs of slowing down.
Increased Demand for Cleanliness
As COVID-19 vaccines are distributed, the need for space and cleanliness is still critical to consumers. The pandemic reminded businesses of the importance of disinfecting and maintaining the sanitation of the facilities and equipment. In an article by First National Realtor Partners, they found consumers will expect carts and credit card keypads to be cleaned regularly and enforce spacing between people. Stores can be breeding grounds for germs, and people want to minimize the chances of being exposed to viruses.
One of the most prominent trends in the current commercial real estate market is sustainability and green building. iOptimize Realty found that new developments will focus on creating sustainable spaces and seek Leadership in Energy and Environmental Design certifications. Developing and investing in green office space is beneficial for employee satisfaction and your wallet. With innovative technology and sustainable infrastructures, you can save on monthly utility bills like electricity and water.
Need help choosing a property that fits these trends? Let us help! Contact us through the form on our home page, and we’ll be happy to help you find the perfect location.