Commercial Real Estate Trends
In spite of some negative setbacks for commercial real estate, the market, especially in New York, is still promising for savvy investors. Knowing the current commercial real estate trends and prospects can help investors make wise, timely choices.
For starters, there are a wide variety of types of commercial real estate. Some types will fare better under certain conditions. Commercial properties include retail, multifamily dwellings, offices, industrial facilities, hotels, hospitals, and land, not to mention mixed use.
In addition to the type of property, other factors affect the economic aspect. For example, since 2022 there has been a 15% rise in office vacancies in San Francisco. This rising rate has contributed to lowering property prices by 13%. Much of these economic changes are impacted by the fact that employees are spending 25-35% less time in the office today than before the pandemic. What this means for the market is that, per employee, there is 15% less of a demand for office space.
In spite of these discouraging numbers, wise investors understand that, with the exception of offices, commercial real estate is still strong. This is especially true in light of distress or dislocation in the market, which can create further investment opportunities. If you are considering investing in commercial real estate, you will want to keep a close eye on the most recent developments. Indeed, it looks like there are still plenty of timely opportunities ahead.
Source: ChessRealtors.com
