Commercial Real Estate Trends of 2018
The new year is the best time for new predictions when it comes to the ever-changing world of real estate investments. If you are looking to start investing in commercial real estate, this may be the year to do it.
While nothing is ever a guarantee, these insights into the upcoming trends are a good basic guideline to how your year as an investor may go, and some simple guidelines on how to accomplish your goals in 2018.
Head south if you are looking to rent space. While experts predict that growing technology is eliminating the need for retail and office space, down south in the Sun Belt states, the need for these spaces is still pretty relevant. Not to mention that the property taxes and prices tend to be lower there than other parts of the country. If you are looking to invest in rental properties for commercial use, the south is the place to be.
Sales are going to pick up. Although there will be a slow start because of an increase in interest rates, and sellers and buyers not agreeing on sales prices, things are expected to even out as the year gets started. If a traditional loan is not the ideal option for you, a hard money lender can offer a commercial building loan with a quick turnaround for a hot deal you might find during the winter months. With lower credit standards, hard money lenders are the ideal option to bridge the gap between buying a property, and selling it after rehab or renting the space out.
It’s all about the amenities. Millennials making their way up the ladder in the workplace are not going to be interested in companies that offer office space in outdated buildings. What will attract valuable employees are updated office buildings with the ability to connect through modern technology and offer a location close to trendy restaurants and retailers.
Industrial structures are going to be a great investment. All of those items from online retailers have to be stored somewhere, and the uptick of warehouses in bigger cities is going to remain strong through the year. These large industrial spaces are great investments because there’s going to be a more significant need for these spaces as more brick-and-mortar storefronts turn to increasing online sales. A real estate development loan is a great way to build these structures on a hot piece of property you may acquire over the holidays.
Senior living will be a hot commodity. With the baby boomers entering the stage in life that may require more care, the need for elegant senior living facilities will continue to increase. Assisted living, senior communities and full-time care facilities will be needed, and are of great interest to smart real estate investors. Like Millennials, this group will also be looking for great amenities to continue independence and quality of living.