Commercial Real Estate Industry Trends and Stats
Investing in real estate can be one of the most significant undertakings your business ever makes. As with all investments, timing is everything in commercial real estate. So, understanding the industry’s statistics and trends can help you make the most of your owner-occupied or investment project.
Current Real Estate Trends
To understand what is happening now and what will happen in the future of business real estate, it is important to follow the latest trends. These are some of the driving factors in the industry currently:
- Flourishing Technology: Many industries have been redefined by technological innovations in the past few decades. Real estate is no exception. Lenders and investors are making greater use to data to find projects and opportunities that may have been missed in the past. Mobile technology is also making it easier to do deals on the go, staying ahead of the crowd.
- Urban Growth: Population growth has resulted in a greater emphasis on high-density housing. More people are transitioning from the suburbs to cities than ever before. This had led to the development of multi-use buildings, new businesses and better public transportation to cater to this new urbanite crowd.
- Innovative Partners: With a great focus on urban real estate, there is also a strong need to partner with businesses and innovators. Spaces such as accelerators and co-working offices have been popular for a while but are declining. Cutting-edge leaders in the real estate world are finding new and better ways to interface with the business community.
Commercial Real Estate Statistics
Sometimes just knowing the trends isn’t enough to really understand what is happening in the real estate world. After all, many organizations are making greater use of data to make their buying and lending decisions. You need to be using data and statistics too.
- The real estate industry is growing its GDP steadily. It expanded nearly 3% in 2016 and has continued that trend since.
- Jobs have been expanding with a net gain of about 600,000 jobs annually. That includes 1.5 million new private-sector jobs, although some jobs were also eliminated each year.
- Vacancies in retail declined by around 8% in 2017 and have continued to improve.
These signs all point to a healthy economy with more people working and earning. In turn, that means more spending and greater returns for real estate investments. Whether selling residences or housing businesses, there is money to be made in the current economy. Keep learning about the real estate world to find the right opportunities for you. And for any commercial real estate financing needs, we at Casey Funding are here to help.
