With the new year rapidly approaching, what can we expect for the CRE Market? We've taken a look around the internet and collected some of the possible market conditions for your reading pleasure!
Mixed-Use: Investors are starting to see mixed-use property types as a safer bet in this economic climate. However, this may require compromises from investors and tenants. REITs! REITs! REITs!: Because of the uprise in the work, live, play mentality, the demand for office space may decrease; however, retail, multifamily, and industiral demand should remain high. In addition to this, transactions may continue to decline and upward momentum in pricing is likely to slow down due to modest economic growth and ongoing political uncertainty. What investors are being cautious about are potential interest rate rises and credit availability going forward. Labor in the Construction Indusrty: Changes in the job market have put some pressure on the labor force of the construction industry. This worker shortage means a longer development timeline and more delays. Construction companies may also be more selective about which projects they choose to take on. Global Markets: Unforseen political issues and conflicts make for a less stable global economy. Implications could be economic deceleration and less investment in real estate. New Types of Goods/Services: We've written several posts about the growing virtual/sharing economy, and there's no doubt that it will play a huge part in the economy in 2017. With this burst of new economic growth will come new types of regulations; the implications of which are unforseen at the moment. Next year will hopefully give us a more solid look at the sharing economy and the impact on the CRE market. How do you think the CRE market will look in the New Year? Let us know in the comments below! Sources: Top 10 Emerging Trends Shaping Real Estate in 2017 The Future of Mixed-Use Development A Look at Coworking Spaces in KC, and Why it Matters to You 2017 Commercial Real Estate Outlook Fed Raises Key Interest Rate, Citing Strengthening Economy 10 Construction Industry Trends to Watch in 2016 The CRE 2016-2017 Top Ten Issues Affecting Real Estate How the Shareconomy Affects Commercial Real Estate |
|