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
Juniper Square raises $25 million to help make it easier to invest in real estate
Dec 14, 2018Juniper Square, a technology company that helps connect investment firms with private capital to be used to invest in real estate, announced this week that it raised $25 million to help grow its business. “Our mission is to transform the world’s private capital markets through software,” said Alex Robinson, Juniper Square’s CEO and co-founder.
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MBA: Commercial, multifamily mortgage debt just hit an all-time high
Dec 14, 2018 -
MBA: Commercial, multifamily mortgage delinquencies remain historically low
Dec 07, 2018 -
Crescit Capital Strategies launches bridge lending program for mid-market CRE
Dec 03, 2018 -
MBA: Commercial mortgage originations fell in Q3, but multifamily bucked the trend
Nov 19, 2018 -
Commercial brokers made more money than ever last year
Nov 15, 2018 -
Real estate crowdfunding startup RealtyShares hits hard times, halts new investments
Nov 09, 2018 -
JLL subsidiary makes big move into commercial real estate debt
Nov 05, 2018 -
Walker & Dunlop grows lending arm by acquiring iCap Realty Advisors
Nov 01, 2018 -
Former Colliers real estate broker admits to trying (and failing) to bribe foreign government official
Sep 07, 2018 -
MoodyÕ buying commercial real estate data provider Reis for $278 million
Aug 30, 2018 -
Cushman & Wakefield files for IPO
Jun 22, 2018