The commercial real estate market began 2015 as its strongest year since before the recent national financial crisis. Across the nation, values are increasing, bringing many buyers, sellers, and brokers back to the table for negotiation. To stay ahead of the game, an awareness of the latest trends in commercial real estate is essential. Here are four trends that will most strongly impact the market in 2015.
1. Urban Bifurcation
With more and more millennials moving into urban areas, the desire for multi-family homes in up and coming environments is growing quickly. In addition, many millennials prefer housing that is located in developing urban core, including new, recently gentrified pockets. Gone are the days of focusing on an inner core of a community and having to branch from the outside in. Now, these urban pockets are able to provide increased space for a more eclectic clientele.
2. Retail Bifurcation
Even in non-urban areas, an increase in bifurcation is continuing to build. Seeing retail shops of varying levels in the same area is becoming more prevalent and will only continue to be the norm. Filling spaces with high-end retail establishments paired with middle and lower end ones is becoming much more common and preferred. Property managers who keep this in mind will be able to keep spaces filled to capacity more quickly and consistently.
3. Increased Global Investments in the US Market
As the economy continues to improve, so does the commercial real estate market. The Wall Street Journal predicts that the commercial real estate environment will continue to see increased global investments into US markets, thus propelling the strength of the US commercial real estate market.
4. Increasingly Competitive Markets
As urban cores continue to grow and as additional investors fund new projects, increased leasing options allows consumers to be progressively selective in their choice of office and personal space. Thus, the need to provide both high efficiency and increased effectiveness in the market is greater than ever. Increased markets means an opportunity for companies to shine by providing specialized assistance to clients and by meeting more specific requests of a more eclectic clientele.
We at Caldwell Commercial aim to remain abreast of up and coming commercial real estate trends while also staying committed to the values that have been ours from the beginning: customized services and optimized investments. To learn more about our properties or services, contact us today via email at info@caldwellcommercial.com.
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