The Commercial Real Estate Market Is Transforming: Here's What You Need To Know

 

If you’re looking to sell or lease commercial real estate, then chances are you’ve noticed some big changes in the market lately. More specifically, the fact that buyers and tenants aren’t always in the same place can be frustrating both to those who want to buy and those who want to sell, making it harder than ever to make deals happen. With this in mind, here are three things that you need to know about the transformation of the commercial real estate market today.

 

5 Reasons Why Now Is The Right Time

1. E-commerce is driving changes in the retail sector, which is having an impact on the demand for commercial real estate.

2. The rise of co-working spaces is changing the way businesses use office space, and that's resulting in new types of properties being developed.

3. The sharing economy is having an impact on both residential and commercial real estate, as people are increasingly choosing to rent rather than buy.

4. Technology is making it easier for people to work remotely, which is reducing the need for traditional office space.

5. Environmental concerns are leading to a move away from properties that have a large carbon footprint, such as those that rely heavily on air conditioning or have a lot of single-use plastics.

 

3 Major Trends Happening In Commercial Real Estate

1. E-commerce is driving the need for smaller warehouses and distribution centers closer to population centers.

2. The rise of co-working spaces is changing the way we use office space, with a trend towards smaller, more flexible workspaces.

3. The increasing popularity of mixed-use developments is changing the way we think about land use, with a trend towards denser, more walkable communities. A summary of these trends and how they affect us:

1. As e-commerce continues to grow, companies are looking for warehouse locations closer to cities so that they can have quicker access to urban customers. With fulfillment jobs often requiring 24/7 operations, warehouse employees also need access to nearby amenities such as housing and retail services.

2. The rapid growth in coworking spaces reflects a change in work culture where employees want increased flexibility in when and where they work from home or on site in an office building, rather than having a designated 9-5 desk space within one company's offices.

 

2 Sectors Poised For Expansion In 2019

1. The office sector is one of the most active in the commercial real estate market and is expected to continue growing in 2019. Businesses are increasingly looking for flexible, collaborative work spaces that can accommodate a variety of needs.

2. The industrial sector is also expected to see growth in 2019 as e-commerce continues to increase in popularity. warehouses and distribution centers will be in high demand as companies look to optimize their logistics operations. Companies such as Target, Amazon, Walmart, and Costco have been aggressively building out warehouses near metropolitan areas to minimize delivery times. Additionally, warehouse space has traditionally been less expensive than other commercial property types such as offices or apartments; however with construction costs on the rise due to increasing labor shortages there is some indication that this may change in the coming years.

 

Commercial Mortgages Are Shifting From Banks To Online Lending Companies

In the past, banks were the primary source of financing for commercial real estate projects. However, that is changing. Now, online lending companies are providing more financing for these projects. This shift has caused a transformation in the commercial real estate market. For example, traditional loans have higher interest rates and must be repaid over 15-30 years; whereas, loans from an online lender can be repaid within five years. The benefits of these loans outweigh the drawbacks: It's much easier to get approved for this type of loan since borrowers typically only need enough money on hand to cover down payments and closing costs. These loans also offer lower interest rates because they come with shorter repayment periods. The drawbacks include high origination fees, which make up about two percent of the total cost for some lenders, as well as high monthly payments during early repayment periods (when monthly mortgage payments might exceed rent).

 

Online Space Brokers Will Disrupt The Office Leasing Industry

In a recent study, 84 percent of commercial real estate professionals said they believe online space brokers will have a moderate to significant impact on the office leasing industry in the next five years. The rise of online space brokers can be attributed to a number of factors, including the increasing popularity of coworking spaces and the growing number of small businesses. These businesses are often more flexible when it comes to their office space needs, and they're also more likely to turn to online resources when searching for a new space. As the commercial real estate market continues to evolve, it's important for landlords and tenants alike to stay up-to-date on the latest trends.

 

More Tech Jobs, More Space Needed Means...

The commercial real estate market is undergoing a big transformation as the job market increasingly demands more tech jobs. This means that more space is needed for these workers, and office buildings are being designed and built with this in mind. However, not all areas are equally prepared for this change. Some cities are seeing a rise in demand for office space, while others are struggling to keep up. This transformation is sure to have a big impact on the economy, so it's important to stay informed and up-to-date on all the latest changes. We've compiled a list of resources below if you're interested in learning more about the current state of commercial real estate or if you want to know how to make an investment.

 

Real Estate Management Will Become Automated

The commercial real estate market is in the midst of a digital transformation. Property management is becoming more automated, with technology solutions that handle everything from maintenance requests to rent collection. This shift will result in a more efficient and cost-effective industry, as well as happier tenants. Here's what you need to know about the changing landscape of commercial real estate. When does this transformation start? It started back in 2007 when big data became available. Data storage has become much cheaper, so we have more information at our fingertips than ever before. By 2012 cloud computing was getting traction, meaning companies no longer had to invest large sums of money on their own servers and data centers.

What technologies are going to be driving this change? These changes will be driven by machine learning algorithms, predictive analytics, augmented reality (AR), virtual reality (VR), internet of things (IoT) sensors embedded into physical spaces such as walls or flooring - all communicating over an Ethernet network. Technologies like these are accelerating innovation in sectors like property management by bringing new possibilities for asset utilization and profitability.