What Are 2018 Trends For Commercial Real Estate? | Worth CRE


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What Are 2018 Trends For Commercial Real Estate?

Halfway through what has started out as an eventful year in commercial real estate investing, there are definitely some 2018 industry trends being noticed by commercial real estate brokers.

No matter what you may be considering, there are positives and negatives to be aware of before you sign on the dotted line.

Consider these points as you look for commercial real estate for sale investments so you know what to expect during the remainder of this year.

Trends in Multi-Family Housing

Commercial real estate brokers are finding that interest in multi-family housing and apartments is still growing as has been the case in the past few years.

This is partly due to the millennial population that is leasing more than buying.

Demand for larger units in suburban locations has decreased; however, the need for smaller units in more urban locations is increasing.

There has been increasing demand for both urban and suburban units among retiring and downsizing baby-boomers as well.

The biggest challenge that anyone wanting to invest in commercial real estate in the multi-family housing market may face is rising construction costs.

This is because those looking for these spaces are on smaller budgets than the rents many new construction properties are demanding.

Trends in Office Space

There have been a number of changes in office space trends that those interested in office commercial real estate for sale should note.

The demand for new and renovated urban locations is still strong as some companies continue to follow a millennial workforce into the city.

Fluid floor plans and open spaces that increase interaction are still in demand as well.

Yet location demand is changing, with more companies looking outside the main downtown area for spaces with character that better fits them.

Demand for co-working facilities is rising as is the need for more parking space.

This is a challenge brought about by employers making efficient use of their space and fitting more employees into the same locations.

Trends in Retail Space

The retail sector continues to be the one most affected by change as more companies file for bankruptcy then vacate large buildings and smaller businesses shutter more locations as well.

Buying trends of different demographics has largely influenced this, causing commercial real estate brokers and investors to get creative in how these spaces are used.

Alternate uses for many spaces are growing, especially as restaurants, entertainment centers, and similar usages.

Owners of retail places are even joining forces with online retailers by turning their spaces into warehouses for major suppliers like Amazon.

Retail is not out of the game completely, as there are still many locations where retail is doing just fine; however, adaptability has become the key to survival for malls and retail spaces in less popular locations.

Trends in Industrial Space

On the other side of the retail dilemma, commercial real estate investing in the industrial sector is becoming more fruitful as there is great demand for warehouses and distribution centers that support the growth of online retail.

Construction is up in this sector; however, there is also significant intersection with retail commercial real estate for sale as larger, empty retail spaces are being repurposed for the industrial sector.

Trends in Hotel Space

With leisure and business travel on the increase in recent years, demand in the hospitality industry has grown with it. Hotels, from luxury accommodations to budget facilities, are in demand.

New construction is currently keeping up with such a demand. The biggest challenges to watch out for in hospitality are AirBnB, which has captured a fair share of the market recently as well as online travel agent sites that keep driving down rental rates.

2018 Commercial Real Estate Trends - A Summary

Like other years, commercial real estate investing in 2018 is seeing its share of ups and downs.

To stay on top of the trends and learn more about specific markets, those looking for commercial real estate for sale are advised to work with knowledgeable commercial real estate brokers who can help you find the most lucrative properties for today' s conditions!

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