5 Commercial Real Estate Trends That Will Shape the Future of Your Investment
Buying a property in the commercial real estate industry can be a long, tough road. There are so many things to consider when buying a property; location, zoning laws, potential risk factors and finding profitable properties with low vacancy rates and high rents, just to name a few.
How can you know if commercial real estate investment is for you? What should you look for if you’re considering making an investment in commercial property?
This article will cover five of the most important trends in commercial real estate that will help shape the future of the industry. These trends can help you decide whether commercial real estate is worth your time and money.
1. High Demand for Commercial Properties
It's no secret that the commercial real estate industry has been booming in recent years. This is because there is such a high demand for commercial properties and it seems like every company needs to be near other offices and buildings to succeed.
As a result, more and more businesses are making the switch from owning their own building to renting one instead; this is particularly popular with tech companies that want to be close to other tech businesses.
There are also plenty of investors wanting to buy into the high-demand market as well as developers taking advantage of all these new projects coming up.
2. Modernizing Commercial Properties
In major cities across the globe, there is a change in how people want to work. Modernizing commercial properties means they will be more open and adaptable to changes in the workplace.
From having a more modern looking exterior to implementing flexible office spaces, this trend is one that will continue to shape the future of the commercial real estate industry.
For example, Toyota recently moved into their new San Francisco offices because they wanted an environment that would attract and retain top talent.
They knew that millennials wanted a comfortable space with fewer hierarchies. In other words, they want an environment where they can feel like they have autonomy over how they work-- not just from 9-5 but during hours most convenient to them, as well as working from anywhere, including home.
This trend isn't limited to companies like Toyota; many other big name companies are doing it too and it’s likely many more will follow suit in the future.
3. New Amenities in Business Centers Today
One of the most important trends in this industry is a change in amenities in business centers. In the past, much of commercial real estate consisted of office parks with low-rise buildings and parking lots surrounding them.
Today, more developers are paying attention to what people want in their daily lives. That includes things like high-end restaurants and retail shops offering services like dry cleaning and haircuts.
This trend will likely continue because it's seen as a way to build a community. Developers are starting to understand that people want more from their commercial space than just office space.
4. Finding the Best Investment Opportunities
When you're investing in commercial real estate, it's critical to know what kind of properties and areas will be best for you. Ideally, you want to find a property with low vacancy rates and high rents.
If you're looking to buy an office building, you may want to look for buildings close to shopping centers or entertainment districts where there will be more foot traffic.
Maybe your goal is to own retail space. You may be better off to invest in a property located in a higher-end area where rent is typically higher than average and there's less competition.
To find the right investment opportunity, it’s important to consult with a professional who knows the industry inside and out.
A reputable broker can help analyze your needs and provide valuable insight into what kind of properties would best suit your needs.
5. Green Building Certifications
Green building certifications are a way of assuring that a building or renovation project meets certain sustainability standards. There are many different levels of certification available, depending on the size and complexity of the project.
The most common green building certification programs are the United States Green Building Council's (USGBC) Leadership in Energy and Environmental Design (LEED) program, the Green Building Certification Institute's (GBCI) Green Globes program, and the Canada Green Building Council's (CaGBC) LEED Canada program.
The goal of these programs is to encourage sustainable building practices that save energy, reduce greenhouse gas emissions, and improve indoor air quality.
Buildings that earn certification typically have reduced operating costs due to their energy-efficiency features, and can command a higher resale value than non-certified buildings.
Conclusion – Trends Shape the Future
Living in a society where technology is constantly evolving, it’s no surprise that the ways in which we conduct business are constantly changing too.
First, there is a high demand for commercial properties. This means that there are more buyers out there than sellers and this is great news for those looking to invest in commercial property.
Second, many commercial buildings are modernizing and incorporating new amenities today such as more green spaces and outdoor areas.
Third, it can be difficult to know where to find the best investment opportunity, so we recommend looking at some of the new buildings on the market and doing your research beforehand.
Fourth, green buildings are becoming more popular than ever before.
And lastly, it’s important to pay attention to green building certifications when you are investing in commercial property because they can affect your ROI.
If you are looking for a way to invest in commercial real estate and you want to make sure you make the right decision, these five trends will surely shape the future of your investment and help you make wise decisions about your future.
If you’re ready to take forward steps in commercial real estate investment, at Maddox Companies we’re here to assist you from start to finish. Contact our office to set up an appointment.