Having the right understanding at the right time matters. Trends in the commercial real estate industry are always changing. It’s important not only for brokers but also for their clients that they stay on top of these changes. Having an understanding of what is trending in commercial real estate and staying up to date is vital. Especially for anyone invested in CRE.
The pandemic caused a lot of changes in the commercial real estate market. Some of these changes will continue into 2023, while others may start to reverse. Here are a few commercial real estate trends to keep an eye on this year:
Real Estate Investment
The commercial real estate market has been attractive to investors in recent years. This is expected to continue for the rest of 2023. Commercial real estate investment is on the rise. Low-interest rates and strong rental demand make investment properties more appealing than ever. This increased demand from investors is likely to push prices up. It’s a good time to buy if you’re thinking about investing in commercial real estate.
Since the onset of the pandemic, there has been a big shift toward remote work. A lot of companies have allowed their employees to work from home to reduce the risk of transmission. However, as the pandemic comes to an end, some companies are starting to return to the office. There are a few reasons for this.
First, some industries simply cannot operate. They can’t operate without the tools and collaboration that an office building provides.
Second, working from home can be very isolating and can take a toll on mental health.
Finally, many companies feel that they can better monitor and manage their employees when they are all in one place.
For these reasons, we will likely continue to see a trend toward remote work. We will also see an increase in companies returning to the office or offering hybrid work environments.
Online Real Estate Transactions
The COVID-19 pandemic has forced commercial real estate transactions to move online. Which means many deals are being negotiated virtually. Especially in investment deals where the focus is financials and less on the state of the property. Some investors are buying up properties sight unseen. Conversations that used to be in a conference room or over a business lunch are now over zoom. Despite these challenges, the commercial real estate market remains active. Many deals are still being successfully negotiated virtually.
These commercial real estate trends are key elements to get familiar with. They will ensure success in this industry right now. By understanding these trends, you can make informed decisions. Not only about your investments but also to better position yourself for success.
If you would like to learn more about these trends or anything involving commercial real estate, we are happy to help. Contact us today!