2020 Commercial Real Estate Trends
What’s Trending In Real Estate
Our world is constantly evolving, and so is the commercial real estate sector. New trends appear every year, so it’s important to stay up to date to keep your business competitive. Predicting and staying on top of the trends will make it easier to set realistic goals and make detailed plans to reach them. Here are a few of the key things to consider moving into 2020.
More and more, we are seeing the effects of technology in the commercial real estate world. As technology overall is increasing and improving exponentially, it is becoming more important to familiarize yourself with technologies like blockchain and construction technology. Every single step of the real estate world is impacted by new technologies, and while these improvements are leading to better efficiency and lower costs, it can be hard to reap the benefits if you’re not staying with the times.
In the real estate industry, it’s vital to be aware of the state of the economy. Luckily, it’s appearing that things will stay relatively healthy going into 2020. Of course, the economy is incredibly unpredictable, but economies do tend to agree that conditions like consumer confidence and GDP growth will continue to stay strong. That being said, many also agreed that the real estate cycle is coming off of its peak, but the next dip should not be as impactful as it was in 2008.
Product Type Outlook
It’s important to look at the trends in your specific sector of commercial real estate, whether that be retail, office, industrial, or something different. Overall, the commercial real estate industry as a whole looks to be doing well. The biggest factor in the future of the industry is technology, which affects each part of the industry individually.
For the last five years or so, cap rates have been incredibly low. These rates started to lower gearing the financial crisis with its low-interest rates, and we’ve continued to benefit despite interest rate hikes over the last few years. Unfortunately, the future is still uncertain, and it’s unlikely that we will continue to see these low rates moving into 2020.
All of these are important factors to keep in mind for the new year. To plan your commercial real estate moves for 2020, it will help to have a Fort Lauderdale commercial real estate attorney. Contact us today to discuss your goals and create a strategy for your business moving forward.