Commercial Real Estate
The COVID-19 pandemic ignited widespread change in both the needs and demand surrounding commercial real estate, as businesses nationwide had employees work from home. Nearly two years later, many companies are still working primarily out of a remote setup, while others have returned to office buildings. Stemming from pandemic-related migration from cities to suburban or rural areas, there is more demand for office space in these areas. As of May 2021, just one of every 20 American office buildings had occupancy rates of more than 10 percent, according to Bloomberg.
One of the largest upcoming trends in the commercial real estate industry is the need for multi-purpose buildings. Moving forward, commercial real estate strategists will likely need to offer buildings that enable tenants to rent office space, retail stores, yoga studios, salons and any other type of businesses, in addition to residential living.
Professionals in the commercial real estate space are eyeing an increase in sustainability needs as continued climate change leads to harsher weather. Not only are investors and tenants looking for companies with strong sustainability metrics, but legal requirements are also increasing as well. Many states have implemented laws requiring commercial buildings to meet specific standards, for instance, operating via solar power.
In reality, demand is way up for commercial investment properties albeit with less supply. High-net-worth individuals are purchasing real estate to hedge against inflation and take advantage of the low-interest rates, and, given the low supply of residential properties, they’re turning to commercial properties instead.
Latest Posts
Which companies dominated multifamily and commercial real estate financing in 2018?
Mar 29, 2019Earlier this year, both Fannie Mae and Freddie Mac revealed which commercial and multifamily real estate lenders and originators did the most business with them in 2018. But, which companies truly financed the most commercial and multifamily real estate last year? Here are your answers.
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CRE firm Savills Studley announces rebrand
Mar 22, 2019 -
MBA: Commercial, multifamily mortgages continue performing historically well
Mar 08, 2019 -
Berkadia launches structured capital group by acquiring Central Park Capital Partners
Mar 06, 2019 -
CBRE grows valuation business by acquiring Florida Valuation Group
Mar 05, 2019 -
Hunt Real Estate Capital buys RealtyMogul’s proprietary loan underwriting program
Feb 26, 2019 -
Commercial real estate data and analytics provider CrediFi raises $6 million
Jan 25, 2019 -
WFG National Title Insurance hires new commercial underwriting counsel
Jan 21, 2019 -
Blackstone set to launch largest real estate fund ever
Jan 15, 2019 -
Commercial real estate appraisal tech startup Bowery Valuation raises $12 million
Jan 11, 2019 -
Survey: Most multifamily mortgage originators expect another record year in 2019
Jan 08, 2019 -
Commercial real estate insider: Investors need to broaden their minds about funding sources
Dec 28, 2018