Ringing in the New Year on a high, the commercial real estate industry could be making a comeback in 2019. Keeping up-to-date with trends can be important when evaluating your next move. Whether it’s investing in a shopping complex or finding a new office space for your company, staying in the know can make those choices easier.
The construction of office space is predicted to decrease within the year 2019. With businesses using alternative spaces and co-working spaces, the need for office complexes is being impacted. There has been a steady increase in the costs of construction, the real estate cycle has been fluctuating, and problems with zoning are all contributing factors to the decrease in office spaces. The projected space for new offices in the United States is around 54.7 million square feet. If the prediction is correct, that would mean a drop of around 18 percent.
E-Commerce is growing. That has been determined. Determining whether or not it is having a positive or negative impact on commercial real estate is more difficult to do. Though some stores are being pushed out of business by e-commerce, traditional shopping will not be extinct anytime soon. Amazon had recently acquired Whole Foods. Amazon knows that people still choose to buy their groceries in a physical store and wanted to increase their power and influence. With more online shopping, distribution centers will need to be built so companies can offer same-day delivery and other shipping options that make online shoppers more inclined to order online than go to an actual store. Though e-commerce is becoming more and more popular, it won’t be running traditional shopping out of business any time soon.
Humans are visual creatures. We find things with images more pleasing and are more likely to be drawn to them. People do care about the data that is included with the property information but they are more likely to care about the appearance of the property they will be purchasing. Commercial real estate has lacked in keeping up with this biological programming of their clients. Some companies don’t share images of their properties and if they do, they are low-quality photos. Visual content can add value and attract more customers to the properties if done properly.