Vacancy rates are at all time lows. Absorption rates are at their highest and the “industrial sector has outperformed all other property types with double-digit total returns” according to the Integra Realty Resources 25th annual Viewpoint report covering the commercial real estate industry.
A lot has been made about the in-store shopping trends we are seeing in retail. What has largely been overlooked are the shipping trends shaping the retail landscape this year. Consumers continue to expect faster deliveries for free which is putting enormous stress on the last mile for retailers.
Augmented Reality and Artificial Intelligence (AR and AI) may still be far from standard in CRE, but it’s only a matter of time. High end firms have already been using these tech tools on a grand scale. Research by Goldman Sachs estimates that by 2025, virtual reality (VR) technology alone will generate over $2.5 billion in revenue. Change is happening now and could hit sooner than many of us believe, leaving some CRE pros behind and pushing others to the forefront.
Investing in real estate can be a way to earn passive income and increase your wealth. While plenty of investors have success in residential real estate, others make a move to commercial real estate to gain even more money.
As the future of transportation and city development changes at such a rapid rate, developers are reevaluating the demand for parking in retail, office, and multi-tenant spaces. For people living and working in densely populated areas like San Francisco and New York City, the lack of ample parking has been a reality for some time. But for much of the country, scaled back parking ratios could take some getting used to.
Retail trends have had a huge impact on the industrial market for the last few years. Amazon shifted the entire e-commerce industry to lightning-fast shipping, which means that industrial centers and warehouses are being moved to closer-to-the-city locations to handle the load.
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 the reason why secondary markets are looking so much more attractive to investors this year. But if you look closely, there are 4 macro reasons why investors are shifting monies and setting their sights on secondary metros.
Drone technology was once exclusively used by the military but has entered the consumer market and grown quickly in popularity. Utilizing drone technology for film and photography purposes has added a new tool to many industries, including real estate, and has also created something new for hobbyists. With film and photography applications helping to create the rise in popularity, it was only a matter of time before other industries started to take note.
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.