- July 12, 2018
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Keep an Eye on Commercial Real Estate Trends
Whether you are a seasoned investor, familiar with current commercial real estate trends in your market, or you are just beginning to dip your toes in the water, it is extremely important to watch the market and understand the fluctuations that are occurring. From month to month, patterns will emerge and eventually shift within each individual sector. This is important to note because it will largely help to determine where you want to put your money and what you can expect over the lifetime of your investment. While there are many notable trends occurring at this time in the market, let’s take a closer look at four of them.
Multifamily Real Estate Reigns
Multifamily real estate is a sector of the commercial real estate market that has shown tremendous growth over the past few years. There is no indication that this growth will be slowing any time soon either, which is music to the ears of investors in this niche. So, why has the demand for these types of properties risen so greatly? To answer that, we will take a look at two very important demographics.
- Baby Boomers: This title applies to people born between 1946 and 1964. This sizeable portion of the population is now entering the age bracket where retirement and downsizing are increasingly popular. This creates a much greater demand for townhomes, apartment homes, retirement communities, and other forms of multifamily living, as owners seek smaller spaces with less maintenance.
- Millennials: Born between 1977 and 1995, this demographic is equally as influential on the growing demand for multifamily property. This generation is seemingly seeking experience over stability, with many focusing on travel. This means that less and less of them are choosing to invest in purchasing property, preferring the “no strings attached” feeling of renting.
Overall, the multifamily market is a sector that doesn’t appear to be dwindling any time soon, making it a great place to invest.
Warehouses on the Rise
If you’ve watched the news lately, it won’t come as any surprise that many big-box retailers are closing their doors. So, what impact does this have on the commercial real estate market? At first glance it might appear that this would hurt it, but, in fact, it does nothing of the sort. While e-commerce is certainly on the rise, there is still big demand for commercial space, just in a shifting capacity. On-line retailers still need plenty of space to house their goods, creating a growing demand for warehouses across the commercial market. Many of the e-commerce giants, such as Amazon, are searching for space in up and coming cities where they can supply jobs and support the local community. If you’re looking to invest here, keep your eyes out for spaces that are easily accessible from highways and other major roads, and that have plenty of room for a constant influx of delivery trucks.
Medical Office Space is Changing
Medical office space is another sector of the commercial real estate market that is in transition. With many changes in the medical community, medical space is appearing in much more convenient locations in the forms of urgent care centers located within shopping centers and even neighborhoods. Much of the medical space that is trending right now is also considerably larger, as primary care doctors merge their practices to include a growing number of specialty support services on-site, such as x-ray services, laboratories, chiropractors, et cetera. The medical community is also becoming more aware of the power of aesthetics. For this reason they are seeking medical office space that is cleaner, more modern, and more appealing on the surface.
Job Growth Creating a Growing Need for Office Space
The economy has been steadily on the rise in 2018, which is great news for anybody looking to invest in commercial real estate. With our economy primarily dominated by service-oriented companies in the areas of technology and finance, and large corporations also playing a major role, the need for office space has grown exponentially, with no clear end in sight. This makes it another important sector to consider if you are looking to invest.
Searching for Commercial Real Estate in Baton Rouge or the Surrounding Area?
Regardless which sector of the commercial real estate market you are interested in, working with a skilled real estate Advisor is the best way to ensure a sound investment. At SVN | Graham, Langlois, & Legendre, LLC, we want to match you with best investment opportunity possible and will go to great lengths to guarantee your satisfaction. Let our nearly centuries worth of combined experience go to work for you. Take a look through some of our available commercial properties today, and contact one of our team members to begin your search!