Industry insights, market outlook reports and commercial real estate
news, and trends from the Coldwell
Banker Commercial brand.
It has been said that it is only a matter of time before blockchain, the proprietary technology that supports cryptocurrencies such as Bitcoin, will begin to infiltrate industries worldwide. Believe it or not, even historically traditional industries are not immune to the disruption – commercial real estate included.
Lost in the headlines about Amazon acquiring hundreds of Whole Foods stores last year was the company’s announcement of a big search for a new second headquarters – although everyone in CRE was paying attention.
Reuters reported at the end of last year's third quarter that the office vacancy rate had remained flat at around 16% for three straight quarters. Experts have predicted that the office market will continue to remain generally flat throughout 2018. Yet despite those numbers, some cities are really thriving.
Fallout from the housing collapse a decade ago resulted in a surge in the renter population–outpacing homeownership for the first time in history. It also marked a return to cities where more walkability with access to public transportation offered a much more affordable lifestyle.
Augmented Reality and Artificial Intelligence (AR and AI) may still be far from standard in CRE, but it’s only a matter of time. High-end firms have already been using these tech tools on a grand scale. Research by Goldman Sachs estimates that by 2025, virtual reality (VR) technology will generate over $2.5 billion in revenue.
Investing in real estate can be a way to earn passive income and increase your wealth. While plenty of investors have success in residential real estate, others make a move to commercial real estate to gain even more money.
As the future of transportation and city development changes rapidly, developers are reevaluating the demand for parking in retail, office, and multi-tenant spaces. The lack of ample parking has been a reality for people living and working in densely populated areas like San Francisco and New York City.
The landscape of the real estate market is changing by leaps and bounds. Over the past couple of years, we’ve seen a lot of changes in commercial real estate, from shopping malls across the country abruptly closing down to millennials leaving their suburban communities and flocking to urban centers en masse.
Last year, core assets were ranked second highest among investors. This year, secondary metros took that spot. Some argue that the cap rates for core assets and investors looking for assets that produce higher yields are why secondary markets look so much more attractive to investors this year.
With the internet becoming a part of almost everyone’s daily lives, it has quickly become a great resource for helping develop and facilitate the sharing economy. Three ways we currently see this economy are in transportation, vacation rentals, and office sharing.