Now that we are in the new year, it is time to check in on what to expect for commercial real estate for 2019. To that end, this article highlights several trends to keep an eye on.
Possible Decline in Office Construction
The year 2018 was a very strong one for office construction, which is a critical part of commercial real estate. Roughly 68 million new square feet of office space was constructed. However, the figure in 2019 is projected at close to 55 million square feet—an 18% drop. According to the National Real Estate Investor website, going forward, demand for office construction will be highest in Manhattan, San Francisco, Washington DC, Seattle, and the Dallas–Fort Worth area.
Changes in E-Commerce
It is easy to think that e-commerce—which does not require property like well-located storefronts—may damage commercial real estate projections, but that may not be the case. For example, e-commerce giant Amazon recently acquired Whole Foods, signaling a desire to move into physical, traditional sales locations. Additionally, e-commerce may open new avenues for investing: Though they rely less on storefronts, online retailers still need space such as warehouses.
More Emphasis on Visuals
Now that virtually everyone has a high-quality camera on their phone, people have come to expect striking visuals more than ever before. That also applies to commercial real estate. Whether you are looking to sell a property or attract tenants, in 2019 and going forward, it will be important to make sure the visuals you supply are numerous and good looking. Great pictures can ramp up your asking price and speed up the process of finding buyers or tenants.
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