2015 is already being heralded as an outstanding year for the commercial real estate market. From sellers to buyers to brokers, everyone’s happy at the rising values. So what’s behind this real estate boom?
Millennials are reshaping the real estate market with their demands for multi-family homes in new urban areas with all the modern day amenities. Such urban spaces, while expensive, offer more square footage for their eclectic clientele. And people are willing to pay for it.
Growth of retail spaces
People like to shop. To cater to this social need, commercial property managers are offering spaces that suit both high-end retail establishments as well as middle and lower end ones. Even non-urban areas, using this strategy effectively, are seeing a consistent growth spurt.
Foreign investments on American soil
A growing economy directly affects the commercial real estate market. More and more global investors are putting serious money into the US commercial real estate market, strengthening it even further.
More markets, more competition
Thanks to growing urban spaces and foreign investment, we note the rise in increased leasing options. Renters have choices when it comes to office and personal space. Landlords need to offer property that is not only high efficiency (has plenty of amenities) but also has increased effectiveness (better experience.) (image via Steelcase)